Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the EU’s decision not to pause the new rules of origin rules under the Trade and Co-operation Agreement, due to come into effect at the start of 2024; and what steps they are taking to encourage UK carmakers not to offshore operations to the EU.

The rules agreed in the Trade and Co-operation Agreement were designed to reflect industry capabilities, whilst encouraging onshoring of battery supply chains. Due to unforeseen shocks, carmakers across Europe have said they cannot meet the TCA's rules from 2024 and could face tariffs. This is a shared problem and HMG is determined to work with the EU to fix the issue faced in 2024. Supported by Government, carmakers and the wider automotive supply chain continue to show commitment to the UK, as demonstrated by recent investments involving BMW MINI in Oxford and the more than £4 billion Tata gigafactory.