Starmer to give speech on tariff turmoil but car industry says actions will have limited impact – UK politics live

Heidi Alexander, the Transport Secretary, has affirmed that the revisions to the Zero Emission Vehicle Mandate, unveiled today, stem from consultations initiated late last year. This process began prior to the announcement of US tariffs and even before Donald Trump’s presidential term commenced. These **EV rule changes** and **zero emission vehicle mandate** adjustments are key for the **car industry** adapting to future regulations.

However, Alexander stated that the tariffs have imbued the announcement with “renewed urgency.” Speaking to LBC, she explained:

The consultation regarding the zero-emission vehicles mandate commenced on Christmas Eve and concluded in mid-February. Consequently, the government had always intended to present its response in April.

The imposition of global tariffs by the US administration last week has certainly expedited our review in recent days. Consider businesses like Jaguar Land Rover; their strategic planning has been significantly disrupted due to their substantial car exports to the US.

Car manufacturers have emphasized the necessity for clarity on this matter. It is crucial that we promptly introduce a practical and sensible package, which we are doing today. This action aims to alleviate a portion of the uncertainty from their planning, acknowledging the present challenges faced by numerous businesses.

The Green Alliance think tank acknowledged the government’s commitment to the 2030 target for phasing out petrol and diesel car sales, excluding niche supercar brands such as McLaren and Aston Martin, now granted exemptions. However, they voiced apprehensions regarding the potential impact of the newly announced adjustments in impeding the automotive industry’s complete transition to electric vehicles. This is a crucial aspect of the **electric vehicle mandate**.

Shaun Spiers, Executive Director of the Green Alliance, commented:

We appreciate the Prime Minister’s explicit endorsement of the 2030 phase-out for highly polluting cars and vans. The UK car industry’s future must be electric, as there is no viable alternative.

The government’s prompt action to shield the UK car industry from US tariffs is commendable. However, it is imperative to recognize the accelerated progress of China and other nations in EV production.

In the long term, these amendments to regulations aimed at growth may undermine competition, potentially increasing costs for working families by perpetuating their reliance on expensive petrol vehicles.

The only sustainable solution lies in the government articulating a clear industrial strategy. This strategy must be firmly anchored to a commitment to climate action, safeguarding UK jobs and our energy and economic security.

The Conservative Party asserted last night that the modifications to the Zero Emission Vehicle Mandate, declared by the government, constituted a policy reversal. This comes amidst ongoing discussions about the **zero emission vehicle policy** and its implications for the **automotive industry**.

However, this morning, Transport Secretary Heidi Alexander countered this claim. She clarified that the adjustments—which do not alter the 2030 target for phasing out the sale of most new petrol and diesel vehicles—will only have a “negligible” effect on the UK’s carbon emissions. The focus remains on promoting **electric vehicles** and achieving environmental targets.

In an interview with BBC Breakfast, she stated:

The alterations we are implementing have been meticulously calibrated to ensure they do not significantly undermine the carbon emission reductions embedded within this policy.

In fact, the resultant impact on carbon emissions from these modifications is insignificant.

Eurig Druce, UK Managing Director for Stellantis UK, the parent company of Vauxhall, has welcomed the government’s decision to introduce greater flexibility in the application of the Zero Emission Vehicle Mandate. However, he emphasized the need for further incentives to bolster consumer adoption of electric vehicles. This is crucial for the **UK car industry** in the face of **Trump tariffs** and global market shifts.

Druce stated:

Given the challenging geopolitical landscape and heightened pressures confronting the automotive sector, extending current flexibilities and introducing new ones will assist Stellantis in maintaining compliance.

We appreciate the added flexibility, offering our clientele increased freedom of choice. However, stimulating market demand and introducing supportive measures remains essential. We will maintain close collaboration with the government on this aspect.

Good morning. A primary responsibility of any Prime Minister during a crisis is to demonstrably respond proactively, present a viable plan, and convey an image of competence rather than inaction. Today’s circumstances are unique as Keir Starmer is addressing a crisis initiated by a supposed ally. However, the fundamental approach—”the government will protect you”—remains consistent in this familiar crisis response scenario. This situation highlights the complex interplay of **UK politics**, the **car industry**, and international trade issues like **Trump tariffs**.

Starmer is scheduled to deliver a speech this early afternoon. Pippa Crerar’s overnight preview provides insights into his intended message.

Starmer’s address will predominantly focus on the automotive sector, significantly impacted by the 25% tariffs imposed on exports to the US. He is expected to articulate:

Global trade is undergoing a transformation, necessitating more decisive and rapid actions to restructure our economy and nation through our Plan for Change.

Now, more than ever, UK businesses and workers require a government that actively intervenes, rather than passively observes. This demands tangible action, not mere rhetoric. Therefore, today, I am announcing significant modifications to our approach in supporting the car industry.

The announcement pertains to adjustments in the Zero Emission Vehicle Mandate. This mandate comprises a complex framework of regulations establishing targets for automotive manufacturers to ensure their transition towards electric vehicle production and the cessation of new petrol and diesel car sales by 2030. While the 2030 target remains largely unchanged—with exemptions for ultra-low volume supercar brands like McLaren and Aston Martin—manufacturers will now be permitted to sell full hybrid vehicles until 2035. Additionally, financial penalties for companies failing to meet the ZEV targets will be lessened, and greater flexibility will be granted in target compliance. Further details are available in a news release from the Department for Transport.

The automotive industry has offered a cautious welcome to these amendments, acknowledging their limited scope. Industry sources have characterized them as modest and unlikely to substantially mitigate the existing challenges.

According to the Financial Times, Lisa Brankin, Managing Director of Ford UK, described the announcement as “a small step in the right direction,” while also noting its inadequacy as “the giant leap required to address the especially challenging electric vehicle market conditions.”

The Society of Motor Manufacturers and Traders (SMMT) emphasized the need for more extensive measures. Mike Hawes, SMMT Chief Executive, stated:

We await the complete details of the regulatory adjustments. However, considering the potentially severe difficulties manufacturers face due to the newly imposed US tariffs, more substantial interventions will almost certainly be necessary to protect our industry’s competitiveness. Continued and accelerated UK-US negotiations are essential, alongside the prompt delivery of long-awaited industrial and trade strategies that prioritize the automotive sector.

In a radio interview this morning, Robert Forrester, CEO of Vertu Motors, a major UK car dealership group, expressed stronger reservations:

While the announcement is verbose, it fails to address the core challenges. The electric vehicle targets for 2030 remain unchanged. The fines structure has been adjusted, but a £12,000 penalty per petrol and diesel vehicle sold above the zero-emission target up to 2030 persists. This equates to billions in potential fines for manufacturers. Faced with tariff pressures, manufacturers are left with the unpalatable choice of incurring significant fines or rationing petrol and diesel car sales. Fundamentally, little has shifted. This is essentially mere tinkering.

For a deeper understanding of the severity of the Trump tariff situation, Graeme Wearden’s business live blog offers valuable insights. It notes a 6% plunge in FTSE 100 shares this morning, signaling significant market repercussions of these **US tariffs** affecting the **car industry** and broader economy.

Today’s Political Agenda:

• 10am: Nigel Farage, Reform UK, press conference in Doncaster with mayoral candidate Alexander Jones and a “special guest.”
• 11.30am: Downing Street lobby briefing.
• Early afternoon: Keir Starmer speech in West Midlands on government support for carmakers.
• 2.30pm: Angela Rayner, Deputy PM, takes questions in the Commons.
• After 3.30pm: Transport Secretary Heidi Alexander statement to MPs on zero emissions vehicle mandate changes.

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