- Labour aims to boost EV manufacturing with domestic battery production, gigafactory investments, and support for R&D and skills development.
- The new government will expand EV charging infrastructure with binding targets and regional investment for balanced distribution.
- Labour plans to reduce energy costs, enhance EV market competitiveness, and maintain consistent policies for long-term growth.
Labour has won the UK’s 2024 general election by a landslide, what does that mean for the UK’s electric vehicle sector?
In an election where the left-wing Green Party won a record four seats, is the climate becoming more important to voters? Most importantly, what are the incoming Labour government’s intentions for the UK’s emobility sector?
“The UK’s automotive sector is a jewel in our manufacturing crown”
The UK has slipped to become the 17th largest vehicle producer in the world. High energy costs, supply chain issues, and trade barriers have taken their toll. Moreover, inconsistent government regulations have further hindered progress. However, the newly elected Labour government plans to turn things around.
Labour’s strategy is centred around zero emission vehicles (ZEVs). Commercial sales of ZEVs have been growing, but public policy has not kept pace. To address this, Labour intends to work closely with businesses to secure supply chains, boost competitiveness, and increase demand.
A key part of Labour’s plan is to align EV manufacturing with battery production. The government promises to part-finance new gigafactories through the National Wealth Fund. This investment is expected to create 80,000 jobs, power 2 million EVs, and add £30 billion to the economy. By securing domestic battery supply chains, Labour aims to make the UK a more attractive location for EV production.
To further build consumer confidence, Labour will introduce accurate labelling for new EVs. This will include information on the vehicle’s carbon footprint, battery range, and expected lifespan. A standardised battery health certification for used EVs will also be implemented, ensuring a healthy second-hand market. The impending battery passport legislation will help this mission.
Labour recognises the importance of the European market. Half of all vehicles produced in the UK are exported to the EU. The new government will press for delays in the Rules of Origin provisions to avoid trade disruptions. A Supply Chains Taskforce will be established to examine and support domestic raw material supplies, including lithium mining in Cornwall. That will yet further extend the UK’s domestic supply chain.
Skills development is crucial
The transition to EVs requires new expertise, particularly in ZEV maintenance. Labour plans to replace the Apprenticeship Levy with a Growth and Skills Levy. This will give businesses more flexibility to train their staff. Additionally, the government will support colleges specialising in the technical skills needed for the future, particularly in EV technology.
R&D will also receive a significant boost. Labour supports institutions like the UK Battery Industrialisation Centre and commits to long-term R&D funding. This stability will encourage private investment and drive innovation in the automotive sector. With megafactories popping up, and British-born EVs becoming more abundant, this stability is set encourage rapid growth.
We won’t get anywhere without charging infrastructure
Currently, the government is set to miss its targets for charging points. Labour plans to accelerate the rollout with binding targets and ensure a balanced spread across the country. This will boost consumer confidence and make the transition to EVs smoother. While these targets are yet to be set, they are a promising sign of growth.
What’s more, the party pledges to redirect funding to ensure a more even spread of infrastructure across the UK. With London hosting by far the majority of the UK’s charging infrastructure, this regionalised expansion will help millions across the UK with access to charging. We are extremely interested to hear more granular detail on the Labour Party’s charging infrastructure plans.
High energy costs have been a significant burden on UK manufacturers
Labour aims to make the UK a clean energy superpower by 2030, providing cheaper, zero-carbon electricity. This will involve the largest upgrade to the national transmission infrastructure in a generation. Lower energy bills will make the UK more attractive for investments in gigafactories and help motorists transition to EVs.
One of Sir Keir Starmer’s pivotal policies throughout the campaign has been the creation of ‘Great British Energy’ to increase investment in renewable energy and slash household bills. We are yet to establish what this could mean for EV charging prices, however, if bills drop, so do charging costs.
Industry insights
Asif Ghafoor, CEO of Be.EV, shared his insights from a leadership position within the UK’s EV industry:
“Labour should introduce a simple mandate that compels every local authority to open up 50% of their land for private companies to install EV chargers. They don’t have the capital or expertise to do it themselves. We don’t want any more rules or changes – that’s a headache for everyone. What we really need is continuity and certainty. This will really help charging networks to expand.
There needs to be some encouragement to drivers, and we have a few options here. We could reduce the power cost for those who switch and get rid of the VAT on public EV charging costs. Norway is a good example. They gave free exemptions to the toll for EV drivers and gave free local authority parking as well. These aren’t expensive and they went a long way in creating a more positive feel about EVs.
We have an opportunity to be world leaders in EV chargers. We have the expertise and capital to do it, and if we do it successfully, we can export this to other countries, creating jobs and investment along the way.
Every time previous Governments have had a mandate to encourage green finance investment it’s ended up being a disaster.
We should have less government involvement. There’s enough capital and expertise in the UK that all the Government needs to do is simplify things and let the private sector get on with it.
The obsession with a total number of chargers being installed is unhelpful. It leads to far too many cheap lamppost chargers being installed, which are not only slow, but will become nothing more than street clutter in the next three years.
Instead, the Government should set clear targets that each DNO needs to deliver a certain amount of power to chargers on an annual basis or they get fined! It’s simple – we need more of a focus on installing faster chargers and put the pressure on DNOs to get them to speed up the transition.
Instead, they should have targets for chargers in their area to provide a certain amount of power to encourage more useful chargers. If they don’t meet these targets they should be fined. The LEVI fund has been a complete waste of time and needs to be scrapped. It means local authorities spend a lot of time faffing around unnecessarily for very little progress.
Finally – bring the 2035 ban back to 2030. It’s an achievable goal that won’t cost the Government a lot, but will be a huge psychological boost that will get people feeling good about EVs again.”
Ian Plummer, commercial director at Auto Trader, added:
“All too often in the recent past, we’ve seen short term political advantage prioritised at the expense of the serious long-term decision-making the country needs to meet net zero goals. Given the size of their mandate, we’d like to see Labour do more to support the transition to greener vehicles. That means protecting the existing salary sacrifice and BIK incentives to support the new electric car market, and targeted financial incentives on used electric cars to support greater adoption.
We also need to be proactive and transparent about future changes in road pricing and taxes for electric cars so consumers can plan accordingly, as well as supporting the industry to install more chargers by speeding up planning and encouraging more creative ways to charge EVs near people’s homes.”
