Starmer to relax rules over electric car sales as government pledges 'bold action' in wake of Trump tariffs
6 April 2025, 23:12 | Updated: 6 April 2025, 23:32
The Prime Minister has outlined plans to support "British brilliance" and back car brands like Rolls-Royce, Vauxhall, and Land Rover in the wake of Trump tariffs.
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Sir Keir Starmer has confirmed the 2030 phase-out date for new petrol and diesel car sales, with hybrid vehicles allowed to be sold until 2035.
Small manufacturers will be exempt from the mandate, and firms will be given more flexibility in how they meet the target, reducing pressure on the industry.
To support this transition, the government says it is investing £2.3 billion to boost the manufacturing of zero-emission vehicles and help working people make the switch to electric cars.
Starmer said new era means we must go "further and faster" in the bid to spur growth.
British car brands like Rolls-Royce, Vauxhall, and Land Rover are set to receive greater certainty, stability, and support in the face of global economic headwinds.
Yesterday, Jaguar Land Rover "paused" shipments to the US over the impact of the tariffs.
Trump's tariffs officially came into force on Saturday, with global stock markets plunging deeper into the red in response to the import taxes.
'Further and faster'
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.”
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'Global economic challenges'
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.”
