The UK’s Labour Party is ready to commit £1.5 billion to push the automotive industry’s energy transition

  • The Labour Party commits £1.5 billion to transition the automotive industry to green technologies, emphasising leadership in electric vehicles.
  • The party will invest £7.3 billion in a national wealth fund to create 650,000 jobs and re-industrialise the UK.
  • Proposed Brexit deal revisions and private sector collaboration are key, with aims to attract significant private investment.

The Labour Party is proposing revisions to the 2020 Brexit deal, and a huge boost of funding into the nation’s automotive transition

Labour is intensifying its economic campaign with a significant focus on boosting the automotive industry and transitioning to net zero. Shadow Chancellor Rachel Reeves has proposed revisions to parts of Boris Johnson’s 2020 Brexit deal. 

A central element of Labour’s strategy is the national wealth fund, with a substantial portion of this fund dedicated to revitalising the automotive industry. The party has pledged to invest £7.3 billion into this fund over the next Parliament, aiming to create 650,000 new jobs. Specifically, they’re allocating £1.5 billion to the automotive sector to facilitate the shift towards EVs and other green technologies.

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Labour’s investment in the automotive sector is a key component of its green prosperity plan

By investing in EVs and supporting the development of related infrastructure, Labour aims to position the UK as a leader in the green automotive industry.

The national wealth fund’s investment in the automotive sector will create high-quality jobs for engineers, technicians, and other skilled workers across the UK. Labour asserts that these investments will help re-industrialise the UK and support the transition to a more sustainable economy. The initiative will attract private sector investment, with a goal of securing £3 of private investment for every £1 of public money.

Rachel Reeves said: 

“Labour’s plan for growth is about making Britain better off, with good jobs paying a decent wage being created right across the United Kingdom.

The election on July 4 is a chance to deliver on that plan and to turn our economy around after 14 years of Conservative decline. The next Labour government will work hand-in-hand with the private sector to bring investment to Britain’s industrial heartlands and I have been clear that our national wealth fund will be a crucial tool in the armoury to deliver on this ambition.

This election is about change: stability with a changed Labour Party that will make you better off or five more years of chaos from the Conservatives that will mean £4,800 more on your mortgage.”

Reeves plans to meet with members of her British infrastructure council, including executives from Lloyds, Santander, and M&G, to demonstrate that Britain remains open for business despite recent political instability. The party plans to host a global investment summit within the first 100 days if they win the election.

A task force of industry leaders, including former Bank of England governor Mark Carney and Barclays chief CS Venkatakrishnan, will advise on the fund’s implementation. This group will guide the maximising the impact of the investments and ensuring that they contribute to the net-zero goal. 

With the UK facing a general election, which the Labour Party is projected to win, announcements like this one are integral to the nation’s future. The Labour Party has already pledged to reinstate the UK’s 2030 ICE vehicle deadline, and with this injection of funding, it seems like the UK’s automotive industry is finally gaining the support it needs.

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