Zero Emission Vehicle Mandate

Nusrat Ghani Excerpts

Monday 7th April 2025 Commons Chamber

[Heidi Alexander]

I know that the Under-Secretary responsible for the future of roads, my hon. Friend the Member for Nottingham South (Lilian Greenwood), has visited the Burnaston plant in my hon. Friend’s constituency, and I understand what a critical employer it is locally. Toyota will benefit from many of the changes that we have announced today. We are allowing the sale of both full hybrids such as the Toyota Prius and plug-in hybrids after 2030, and Toyota will also benefit from the extension and expansion of the CO₂ transfer caps. Moreover, if it is ever in a position in which it needs to pay fines, it will pay them at a lower level—and we would, of course, reinvest that money in supporting the sector. I can give my hon. Friend the assurance that she and her constituents want: we will continue to support this vital sector.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

I thank the Secretary of State for her statement, and for advance sight of it. Let me also congratulate the shadow Secretary of State on his birthday, and note that he is much younger than the Liberal Democrat spokesperson.

It is clear that the Government must take urgent steps to help the car industry make the switch to electric vehicles. Although increasing flexibility in the mandate is welcome, voices across the industry have made it clear that we also need to bolster demand by lowering the barriers for individuals and businesses to purchase electric vehicles. As the Secretary of State knows, the recent surge in demand to which she referred was a result of significant discounting to promote sales. It is crucial that, as well as improving the charging network, we end the inequality between public and private charging by bringing the VAT rate for public charging into line with that for home charging, at 5% rather than 20%. Not only is the present system damaging demand, but it is wrong to penalise those who have no access to private charging. Ministers should also postpone the increase in vehicle tax on electric cars, and explore the possibility of reintroducing the plug-in car grant.

As the Secretary of State made clear on the media round this morning, the spectre of Trump’s tariffs also looms large over the industry. If the Government are serious about protecting car manufacturing in the UK, the Prime Minister must continue to work with our allies in Europe and around the world on a co-ordinated response. The only way to tackle Trump is to negotiate from a position of strength, and to show that the UK is not alone and will not be bullied.

May I ask the Secretary of State three questions? First, what conversations has she had with the Chancellor about lowering the public charging rate to 5%, and what other measures are the Government considering to strengthen EV demand? Secondly, can she confirm that the measures announced today are a response to the ZEV consultation that ended in February, and tell us what, if any, additional measures are being considered in respect of the tariffs that have since been announced? Thirdly, will the Government start negotiations with the EU about the formation of a UK-EU custom union, to cut red tape not only for vehicle manufacturers but for all UK industries?

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[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Members with lengthy questions are just preventing their colleagues from getting in, so please keep your questions short.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I thank the Secretary of State for her statement and the leadership she is showing in delivering our manifesto commitments in partnership with industry. The contrast is clear with the Opposition, who are bringing along uncosted ideas for grants, subsidies and tax cuts. I welcome the reaffirmation of the plan to roll out EV charging, but is she sure that that will be able to meet EV demand, and are there any plans for a battery health check to help reassure people buying used vehicles in the second-hand market?

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[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Colleagues and the Secretary of State must be much swifter—we have another statement and two further debates. Anneliese Dodds, show us how it is done.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

Workers at BMW Cowley have made clear to me their determination to play their part in a jobs-rich transition to net zero. Can my right hon. Friend explain how these changes will benefit BMW Cowley specifically, given its significance for my constituency and for UK manufacturing as a whole?

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[Heidi Alexander]

I congratulate my hon. Friend on fulfilling his promise to his constituent. We are working closely with local authorities through the local electric vehicle infrastructure—LEVI—scheme to roll out charging infrastructure, and we have issued the guidance that I mentioned earlier to local authorities on improving cross-pavement charging solutions. There are also grants available for householders who do not have a driveway but who wish to install a charge point.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Saving the best till last, I call Sammy Wilson.

[Sammy Wilson (East Antrim) (DUP)]

The statement today is further evidence of the economically damaging and market-distorting impact of the unrealistic net zero policies. The only reason that the Minister is having to impose fines on producers is that demand does not meet the targets that she has set for the production of electric vehicles. Does she not accept that the response from producers will be either to cut back production, reducing jobs, or to reduce the price of EVs, reducing profits and investment in the UK? Are car workers going to be the next group of workers to be sacrificed on the altar of net zero?