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Sir Keir Starmer has promised ‘daring changes’ to the rules of electric and new petrol and diesel cars in response to the rates of Donald Trump.
The Prime Minister will have announced the plan of Labor on Monday to reinstate the ban on new sales of petrol and diesel cars, in a step that is expected to rack up the pressure on Britain’s beleaguered car industry.
Businesses are currently struggling with the new rules of the White House, which means that a 25 percent rate is now applied to foreign cars imported in the US, while other products have a 10 percent levy.
The prime minister’s announcement follows Jaguar Land Rover’s decision to be suspended to the US this weekend because they want to address the new trade conditions.
In their election manifesto, labor promised to restore the date of 2030, after it was rolled back by the Conservative Government of Rishi Sunak to 2035.
Sir Keir will say on Monday that “global trade is being transformed” and that businesses “need a government that acts”.
“It means action, not words,” the prime minister will say. ‘Today I announce daring changes to the way we support our auto industry.
“It will help to execute home -grown firms built by British workers around the world, and the industry can look forward with confidence, as well as with pride.”
The decision to proceed with the reinstatement of a hard ban is accompanied by a significant package of flexibility to help the industry easier, says the Department of Transport, including postponing a ban on gasoline or diesel wagons until 2035.
However, it comes during a perfect storm for the industry, not only through Trump tariffs, but also of Labor’s national insurance increase and a new package for employment rights.
An already struggling automotive industry has closed the Vauxhall plant in Luton, which has also recently been announced in trouble with others.
But despite the long list of industry problems, the prime minister will continue with the dates for the ban on new fossil fuel vehicles.
It follows decisions to ban further oil and gas drilling projects in the North Sea, as well as preventing further coal mining or fracking, and its criticism will expose the UK to energy from foreign suppliers.
In an effort to end anger of car manufacturers, the Department of Transport has promised that the flexibility will support manufacturers who make the transition.
The measures include cutting fines for manufacturers who do not meet their targets under the mandate of the zero emission vehicle (ZEV), which determines a percentage of how many new cars ZEVs should be.
Luxury super motor firms such as Aston Martin and McLaren will still be allowed to produce petrol cars outside the 2030 date, because they only manufacture a small number of vehicles per year.
Hybrids will also be sold until 2035.
Sir Keir will promise on Monday that the plans of labor “will ensure that home -grown firms can export British cars built by British workers around the world and that the industry can look forward with confidence as well as pride.”
He is also expected to set out further measures aimed at supporting British industries later this week.
The conservatives say the changes “will not undo the damage that this labor government has already done” by tax increases and a lack of preparation for President Trump’s rates.
Shadow Business Secretary Andrew Griffith said: “Although the government has performed a U-turn, they shoot at half the cylinders when nothing less than the full acceleration is to support our car manufacturers.
“After almost a year, the industrial strategy of labor is on the network and the business crite and chancellor is undermining competitiveness in the form of higher taxes and new employment tape.”
Transport secretary Heidi Alexander said the automotive industry deserves ‘clarity’ in the economic context.
She said: “Our ambitious package of strengthening reforms will protect and create jobs, making the UK a global car leader in the switch to EVs, while complying with our core manifesto commitment to the issuing of petrol and diesel vehicles by 2030.”
Motor industry Body The Association of Car Manufacturers and Traders (SMMT) said ‘greater action will surely be necessary’ to protect manufacturers, given the tariff changes.
CEO Mike Hawes said: “UK-American negotiations should continue, while the long-awaited industrial and trading strategies must prioritize the car and deliver quickly.”
The government’s announcement comes after Sir Keir spent the weekend in calls with foreign leaders about Trump’s rates, after promising to “do everything” to protect the national interest of Britain.
A spokeswoman for Downing Street said: ‘The announcement of additional rates by the United States all agreed that – as with defense and safety – it is a new era for the global economy. Europe must stand up to meet the moment and ensure that the influence on hardworking people is minimized, while working closely with other countries to maintain broader economic stability.
“The prime minister added that it would be important for the UK to strengthen its trade relations with others around the world at the same time.”
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