Labour claimed a landslide victory at the General Election, meaning the party will form a government in the UK for the first time in 14 years.
But, at a time when the automotive industry is in a transitional phase, what does the election mean for the UK automotive industry?
In this blog, Nationwide Vehicle Contracts takes a detailed look at the Labour Manifesto and its policies relating to the industry.
One of Labour's main promises was to restore the 2030 phase-out date for internal combustion engine (ICE) vehicles. In September 2023, Rishi Sunak pushed back the date to 2035 to give manufacturers more time to prepare; however, he came under widespread criticism.
Labour's move to restore the date is essential to ensuring that the UK is leading the way for net-zero mobility. This will also put us ahead in terms of technology and manufacturing.
Restoring the 2030 time limit now only gives manufacturers six years to phase out their combustion-engined vehicles. But, more electric vehicles simply isn't the answer, the infrastructure also needs to improve.
Keith Hawes, Director of Nationwide Vehicle Contracts said:
“EV sales volumes are reported to be growing, yes, but only within the fleet market so it is vital for the government to provide incentives to incentivise the switch to electric across the whole market.
“Many drivers access EVs through salary company sacrifice schemes which provide substantial tax benefits for employees, but millions of private buyers are offered no benefits or incentives whatsoever to acquire and operate an EV.
“In order to gain real traction the new Labour Government, which appears committed to bringing forward the end of new ICE sales must also think about what equivalent financial incentives should be on offer to private buyers to make the switch and importantly also come up with a solution to help stabilise used EV residual values.”
Labour also promises to support the transition to electric vehicles by accelerating the rollout of charge points across the country. There's no denying that charge point accessibility is one of the reasons why people don't drive electric cars, so if Labour follows through on this, it will be welcomed.
They also promise to boost the market for new and used electric vehicles by standardising information supplies on battery conditions. Essentially, this will be a series of labels that will help develop clear battery standards that all consumers can understand.
I for one would certainly be interested in the latter. If you've not leased an electric vehicle before, hearing all the new terminology can be overwhelming and makes it almost like a guessing game getting an EV suited to your preferences. Standardising information would not only help the consumer but would also boost EV sales.
Keith Hawes added:
“The UK Charging infrastructure is also not keeping pace with the rate at which EV integration is required. We often see large queues at motorway services for expensive high-speed chargers and there’s no support for private buyers to install home chargers.
“If private buyers are to be incentivised to adopt an EV, measures like reducing the cost of charging, supporting the installation of home chargers, and increasing the network of high-speed chargers must be considered."
Keir Starmer's party has also promised to fix an extra million potholes in Britain every year. Should they follow this promise, it will be a welcome relief to drivers across the country who have been struggling with terrible road conditions.
If you're looking for more information on the state of our roads, check out our blog, Pothole Britain: Why Are Our Roads So Bad?
Labour has also promised to tackle 'out of control' premiums for car insurance. Although no more details have been revealed, car insurance prices have skyrocketed in the last few years in Britain, and according to a recent Confused .com report, the average cost is now a mouth-watering £941 a year.
Labour's manifesto also promises to invest in ports, hydrogen, and industrial clusters in every corner of the country. In this, Starmer's party has promised £1.5 billion to help build new gigafactories and update national planning to make it easier to build modern infrastructure.
There’s no denying there’s an air of expectation regarding the new Labour government. The promises they have made will appeal to all motorists, so we now have to wait and see whether they come to fruition.
The automotive industry needs strong leadership that will put the industry and its development first.
Looking for more motoring news? Check out our blog, which features a range of articles on various topics, such as Sustainable Automotive Manufacturing: How the Automotive Industry is Changing and How Chinese EV Brands are Conquering the European Car Market.
We are also one of the UK's largest car leasing brokers, offering a range of car and van leasing deals to suit your every need. Whether you're looking for a hot hatchback or an electric vehicle, we'll have a deal for you.
For more information, check out our leasing deals or call us on 0345 811 9595.
Originally posted: 16th July 2024
