In 2020, then Prime Minister Boris Johnson announced that the sale of all internal combustion engine (ICE) vehicles would be banned in the UK from 2030, with a 2035 deadline for certain hybrid vehicles. This decision was widely praised for setting the UK ahead of its peers, establishing the nation as the most ambitious in terms of motoring policies. However, despite Johnson’s aspirations, doubts remained over whether the ban could be achieved within the short timeframe due to insufficient subsidies and a lack of charging infrastructure.
When Rishi Sunak took office in 2023, his government postponed the ban on diesel and petrol vehicles to 2035, with the recently ousted Prime Minister citing a lack of adequate planning. Sunak also justified the delay by stating, "at least for now, it should be you, the consumer, making that choice, not the government forcing you to do it". He further rationalised the policy change by highlighting the UK’s significant reduction in greenhouse gas emissions compared to other nations, questioning, "how can it be right that British citizens are now being told to sacrifice even more than others?"
This U-turn was praised by some, such as Toyota, for being more realistic and allowing manufacturers and the government more time to make the transition. However, others criticised the Conservatives for easing off on their environmental policies in an effort to placate resistant politicians and industry members.
Following the general election in July, the reformed Labour Party, led by Sir Keir Starmer, signalled a strong intention to reinstate the 2030 ban on ICE vehicles. The Department for Transport confirmed this, stating that further details would be released "in due course".
While restoring the original 2030 deadline is seen as a positive move, several challenges remain for the new government, which must be addressed swiftly as the clock continues to tick.
Alarmingly, private electric car sales fell by 10.8% in the first half of 2024, with EV production also down by 7.6% in the same period, according to the Society of Motor Manufacturers and Traders (SMMT). Although some of this decline is attributed to manufacturers revamping production lines to increase EV output, this marks the first time in six years that sales figures for electric vehicles have stagnated or even declined in the UK.
The situation is exacerbated by the fact that the majority of EV sales are attributed to businesses and fleet purchases, particularly for electric vans. A shrinking number of private buyers are opting for electric vehicles due to high costs, a lack of incentives, and ongoing concerns about range. Despite the growing presence of EVs on UK roads, the average price of an electric car remains at a staggering £48,000, a price point unattainable for most in the current economic climate.
The SMMT has called for more subsidies for private owners to stimulate EV uptake, which are currently much lower compared to other countries in the European Union, as well as Canada and Australia. SMMT Chief Executive Mike Hawes proposed three key incentives: halving VAT on EV sales for three years, aligning public charging rates with home charging, and scrapping the luxury car tax for all EVs over £40,000.
Although these measures are straightforward to propose, implementing them may prove difficult for a Labour government committed to prudent spending and greater regulation. Additionally, the Department for Transport is expected to allow the sale of new hybrids beyond 2030 until 2035, which some have criticised as diluting the original legislation. However, this could be viewed as Labour offering more flexibility to consumers and manufacturers to meet the 2030 deadline for ICE vehicles.
Beyond reigniting public interest in electric cars, the new government must also address declining sales and deliveries of electric vans. The Conservative government introduced the Zero Emission Van Plan in February, requiring manufacturers to meet minimum sales targets for electric vans or face penalties. This should boost the supply of electric vans, but Labour will need to step in with additional grants to ensure there is enough demand.
In summary, despite the significant obstacles the government faces in revitalising EV sales and installing sufficient infrastructure, many have applauded Labour’s commitment to the original targets set by Johnson’s government. Lisa Brankin, Chair of Ford UK, remarked, "the UK’s 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the UK government: ambition, commitment, and consistency." Labour has certainly provided clarity for the industry – now they must match it with determination and ambition.