Blog: Labours Pledges For Motorists

How are Labour going to help UK motorists?

Drivers in the UK have faced constant changes from successive governments over the past two decades, being urged to switch from diesel to petrol and now to electric vehicles. They've been burdened with some of the highest fuel duties in Europe, new vehicle excise duties, and fluctuating tax scales on company cars. The question remains: Will Labour provide relief through financial incentives, duty freezes, or VAT reductions?

The UK is not only a nation passionate about cars, with a rich motorsport heritage, but the automotive industry also plays a crucial role in the economy. Many Brits are employed in this sector, with the majority of the world’s Formula One teams and luxury car brands based here, along with major manufacturing plants for Nissan, Ford, Vauxhall, and Jaguar Land Rover. What does Labour have in store for this vital industry?

During the General Election campaign, Labour's manifesto pledges for drivers included:

• Reinstating the 2030 ban on new petrol and diesel car sales
• Introducing standardised battery health certificates for used electric cars
• Setting binding targets for charging point installations and expediting planning approvals
• Addressing the soaring cost of insurance
• Part-financing additional battery gigafactories
• Committing to 10-year automotive research funding
• Taking a strategic long-term approach to China and challenging where necessary

Let's delve into the three most critical areas for drivers and the industry...

Electric Cars

The most steadfast policy that Labour has committed to is reinstating the 2030 deadline for ending the sale of new petrol and diesel cars in the UK. While former Prime Minister Rishi Sunak delayed this deadline to 2035, Keir Starmer has promised to move it back to 2030. For most consumers, who buy used rather than new cars, this change has minimal direct impact since there is no deadline for used fossil-fuel car sales. However, reaffirming the 2030 deadline provides market certainty and clearly signals the Government's commitment to transitioning to electric vehicles.

China

By 2030, Chinese electric cars are expected to capture 30% of the European market. These cars are cheaper, feature advanced technology, and have more efficient batteries than their European competitors, largely due to significant Chinese government subsidies. In response, the EU plans to impose tariffs of up to 30% on Chinese car imports, in addition to the existing 10%, starting in November, pending a vote. This will likely prompt China to retaliate with tariffs on European cars.

Since the UK is no longer part of the EU, Labour faces a choice: align with the EU on tariffs or remain neutral. If the UK opts out, it may become a prime market for surplus Chinese electric cars, leading to lower prices for UK consumers. Regardless of Labour's stance, it's unlikely they can shield European car manufacturers, as consumers will favour more affordable Chinese options.

Batterise

One of the biggest concerns buyers have about used electric cars is the battery: will it lose performance, become less powerful, have a shorter range over time, or be more prone to fires? How can we know the battery's condition when buying the car? These worries are understandable but largely unfounded. Data shows only a 1-2% loss in performance per year, which most people won't notice. Regarding fire risk, electric cars are involved in very few incidents—only 0.07% of car fires in Sweden last year were electric. To boost buyer confidence, Labour has pledged to introduce a battery health certificate for each used electric car. This initiative should help increase electric car sales as we approach 2030.