Draft Vehicle Emissions Trading Schemes Order 2023

Chris Elmore Excerpts

Wednesday 29th November 2023 General Committees

[Bill Esterson]

That is exactly what we will do. We have been saying it since the Prime Minister announced the delay, so it should come as no surprise to the hon. Gentleman—

[Chris Elmore (Ogmore) (Lab)]

It is about consistency.

[Bill Esterson]

The Opposition believe in consistency and certainty; sadly, that has not been the case with the Government on this issue. We recognise the importance of certainty to manufacturers and consumers. That is why we will stick to the 2030 end-point for new sales of petrol and diesel.

Used-car sales account for more than 80% of sales, so petrol and diesel will be around for many years to come, but if we are to support our automotive industry—which has made those sizeable investments that the Minister rightly recognised—and to reduce emissions as fast as possible, as the climate science says we must, we have to encourage consumers to make the switch and we must make it attractive for them to do so.

In 2020, the then Transport Secretary, the right hon. Member for Welwyn Hatfield (Grant Shapps), announced the ban on the sale of new petrol and diesel cars after 2030. He said that it would put the UK at the forefront of the zero-emission vehicle revolution with vehicles built right here in the UK. I agreed with him then, and I still agree with him now. I am concerned that there are Members on the Conservative Benches who do not agree with him.

The current Transport Secretary suggested that there was little environmental impact difference between the 2030 announcement then and the 2035 announcement now. The trouble is that consumers have been put off, as the Office for Budget Responsibility analysis suggested. The OBR said that just 38% of new vehicles sold in the UK in 2027 would be electric, down from the 67% it predicted as recently as March. That is the chilling effect of the Prime Minister’s announcement. The OBR said that the Government deferral of the ZEV mandate to 2035—it is a deferral not of the mandate, but of the sale of new petrol and diesel—is the reason that car buyers are dissuaded from going electric. Whether the detail of the OBR figures is exactly right or not, its point is well made: there has been a decline in consumer demand.

There is no need to take the word of the OBR—that independent body set up by Government—for it, but we can take industry’s word for it. Mike Hawes of the SMMT said that consumers require from Government

“a clear, consistent message, attractive incentives and charging infrastructure that gives confidence rather than anxiety. Confusion and uncertainty will only hold them back.”

I was with him last night at the SMMT annual dinner and he said that consumers need incentives now, not in 11 years’ time. He said that consumers have been told not to rush. The SMMT president—again, last night—described the chaos of moving goalposts in legislation.

Lisa Brankin, the Ford UK chair at the time of the Prime Minister’s announcement, said:

“Three years ago the government announced the UK’s transition to electric new car and van sales from 2030. The auto industry is investing to meet that challenge… Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three. We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.”

Stellantis’s press release at the time stated:

“Stellantis is committed to achieve 100% zero-emission new car and van sales in the UK and Europe by 2030. Our range will progressively move towards 100% electric, ahead of”

current “legislation.” It went on:

“Clarity is required from governments on important legislation, especially environmental issues that impact society as a whole.”

ChargeUK stated:

“For many years the UK has been a leader in the transition to the green economy of the future. Government policies have attracted investment to the UK and created well paid, high quality jobs. Members of ChargeUK have committed over £6 billion to roll out EV infrastructure in all parts of the UK at an unprecedented rate, turning on a new public charging point every 20 minutes, creating good, sustainable jobs, supporting the switch to EVs and thereby reducing emissions and improving air quality for all. This has been made possible by a clear commitment from the UK government to decarbonise our economy, with the 2030 phase out date for new petrol and diesel vehicles, 2030 acting as an essential catalyst. In his first speech as Prime Minister, Rishi Sunak said ‘I will place economic stability and confidence at the heart of this government’s agenda’.”

We will not cheer yet. ChargeUK went on:

“Today’s extremely worrying news is not consistent with economic stability or confidence. It will compromise the entire industry, and place jobs and consumer and investor confidence at risk. More importantly, government will penalise individual drivers who are doing the right thing. More and more people are making the transition to electric vehicles, as they have been encouraged to do. They are entitled to expect government to keep its promises and continue to support the roll out of charging infrastructure across the UK. ChargeUK calls on the Prime Minister to confirm that the UK government remains committed to the 2030 phase out date for new petrol and diesel vehicles and to a strong ZEV mandate.”

A Labour Government will make that commitment if the Conservative Government will not.

The Climate Change Committee Chair said at the time:

“The Government not only has a legal obligation to meet its Net Zero 2050 target. It also has a commitment to hit the interim emission reduction targets it has put into law. The Climate Change Committee has an obligation to assess progress towards those targets. In June, we said in our Progress Report that we were less confident in the Government's ability to deliver its 2030 and 2050 commitments than we were a year previously. We need to go away and do the calculations, but today’s announcement is likely to take the UK further away from being able to meet its legal commitments. This, coupled with the recent unsuccessful offshore wind auction, gives us concern. More action is needed, and we await the Government’s new plan for meeting their targets and look forward to receiving their response to our Progress Report, expected at the end of October.”

There we have it from industry and the scientists.

Will the Minister address the concerns raised about what ChargeUK called the potential compromising of the entire industry and the placing of jobs and consumer and investor confidence at risk? How will Ministers ensure that consumers do not delay buying battery electric vehicles as a result of the change in date from 2030 to 2035? Furthermore, when will they publish the regulations for what happens between 2030 and 2035?

The regulations refer to charge point infrastructure. The Government are 10 years behind their stated 2030 date for the roll-out of 30,000 charge points—that is from the latest figures that the Government published. What changes will the Government make to increase the rate of roll-out? That is a key element of securing consumer confidence to buy the electric vehicles being produced as a result of the zero-emission vehicle mandate.

The news from Nissan and Jaguar Land Rover about the investments in gigafactories is very welcome. However, we are still well short of the Faraday Institution calculation of 200 GWh battery capacity required. Again, having this capacity is part of building consumer and manufacturer confidence, which is related to the ZEV mandate. Labour is committed to part-funding the additional capacity. Will the Government match our commitment? The rapid charging fund was announced in March 2020. Will the Government match our commitment to release the fund to secure charging coverage across the country, to deliver consumer confidence?

My questions are all designed to probe how to address the gap between consumer demand and ZEV-mandated manufacturer supply. Drivers need to know that electricity prices will fall. Labour will cut energy bills by making the UK self-sufficient in renewable electricity generation. Will this Government match our ambition? Will they make the case wholeheartedly in public—not just on Government websites hidden away that nobody ever sees—that electric vehicles are an attractive option now, by emphasising that an electric vehicle is much cheaper over its whole life than petrol or diesel?

The Government have announced a change of date, which affects the ability of industry to deliver the mandate we are debating today. Today’s decision does not address the delay to 2035. My final question is this. Labour support today’s statutory instrument, but we will revert to the 2030 target in Government, because we want to give the strongest encouragement to consumers and the strongest support to industry. Will the Government allow a vote in this Session of Parliament on the delay to 2035, so that the mandate we agree this morning has the best chance of being implemented effectively?