UK staff at risk as Labour’s petrol and diesel car ban ‘costing jobs’
The UK’s petrol and diesel car ban is leading to job cuts in the motoring industry, with UK staff at risk of losing their positions, according to industry chiefs. The Society of Motor Manufacturers and Traders (SMMT) has blasted the UK’s Zero Emission Vehicle (ZEV) mandate rules, the policy behind the car ban.
Under the rules, officials are forcing manufacturers to build more and more electric cars, cutting production of petrol and diesel models despite fears that supply is outstripping demand. SMMT boss Mike Hawes stressed that firms were now spending billions subsidising electric cars because natural demand for the vehicles was not sufficient.
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Meanwhile, carmakers are hit with fines for not producing enough electric cars which could be a major blow to manufacturers. They stressed all of this was enough for the ban to put British jobs at risk in a major blow for families across the country,
Mike said: “EV market share is 23.9% so far this year. Independent reports suggest natural demand is less than half that. Next year the target will be 38%. In 2028, 52%. Vans are only at 9.5% when we have to hit 34% in ’27 and 46% in ‘28. No one in the industry thinks it can be done.
“The Climate Change Committee, however, knows better than the industry. Its Seventh Carbon Budget assumes the car and van market will be 95% BEV by 2030.
“But the Committee on Climate Change’s remit does not extend to industrial consequences. To the impact on local production, on jobs and communities. If we all have to buy EVs from abroad to hit net zero so be it. The UK will meet its Climate goals but the domestic industry will be collateral damage.
“Governments, however, have to care about such consequences. The ZEV mandate is already costing jobs, profitability and is creating significant risk to UK investment. It needs to be reviewed. Urgently. Not abandoned, but amended to reflect reality.”
The Unite Union recently stressed there was a growing concern that carmakers would simply stop selling cars to avoid fines under the ZEC Mandate policy. They said that this would result in "large-scale job losses across the sector”.
The union backed Sir Keir Starmer's plan to water down the petrol and diesel car ban rules, with firms likely only required to ensure that 50% of models are EVs by 2030 instead of 80%.
After the news was revealed, Unite general secretary Sharom Harham said: “This is a huge victory. UK car workers have been increasingly fearful for their jobs.”