Government outlines clearer pathway and fresh support for electric UK carmakers to help tackle Trump tariffs
- Perry Richardson
- 4 days ago
- 3 min read
Updated: 3 days ago
British car manufacturers are being given a clearer path through global economic uncertainty as the Prime Minister announces reforms designed to support the industry’s shift to electric vehicles.
As part of a wider Plan for Change, the updated approach includes a more flexible Zero Emission Vehicle (ZEV) Mandate and new measures aimed at helping brands like Rolls-Royce, Vauxhall, and Land Rover prepare for the 2030 ban on new petrol and diesel cars.
The Government says the new rules will allow carmakers more time to increase electric vehicle production while maintaining the commitment to end traditional engine sales by the end of the decade. Hybrid vehicles will be allowed until 2035, easing the transition for both manufacturers and consumers.
A modern Industrial Strategy is due to be published this summer, setting out how businesses can take advantage of emerging industries, including clean energy and battery technology. Ministers say the move is essential to reshape the economy in response to growing global insecurity.
The ZEV Mandate will be adjusted to give carmakers more leeway in the early years of the rollout. Flexibilities include the ability to borrow against future targets and trade credits between cars and vans. Supercar firms such as McLaren and Aston Martin will be exempt from targets to help preserve low-volume, high-value production.
Electric vehicle demand is already climbing. In March, sales were up over 40% year-on-year, and the UK was the top EV market in Europe last year. The Government says more than 75,000 public chargepoints are now operational, with new ones added every half hour.
To further support the transition, tax breaks and subsidies remain in place. Drivers charging at home overnight can save around £1,100 a year compared to petrol. Almost 30 new EV models are available under £30,000, and more than half of used electric cars now sell for less than £20,000.
Officials say the package will remain under review as the impact of global tariffs becomes clearer. The Government believes that with £34.8 billion in recent private investment already secured for clean energy, the UK’s auto sector is well placed to lead the transition.
Prime Minister, Keir Starmer, said: “Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change.
“I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside.
“That means action, not words. So today I am announcing bold changes to the way we support our car industry.
“This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride.
“And it will boost growth that puts money in working people’s pockets, the first priority of our Plan for Change.”
Transport Secretary Heidi Alexander said: “We will always back British business. In the face of global economic challenges and stifled by a lack of certainty and direction for too long, our automotive industry deserves clarity, ambition and leadership. That is exactly what we are delivering today.
“Our ambitious package of strengthening reforms will protect and create jobs - making the UK a global automotive leader in the switch to EVs - all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.
“Once again, the Prime Minister’s decisive and bold actions show how we’re on the side of British business while harnessing the opportunities of the zero emissions transition to create jobs and drive growth, securing Britain’s future, and delivering our Plan for Change.”
