Prime Minister Keir Starmer is set to reduce the United Kingdom’s electric vehicle sales target, reversing a key component of the government’s net-zero strategy advocated by Energy Secretary Ed Miliband. The anticipated announcement, expected in the coming weeks, will lower the target requiring that 80 percent of new car sales be all-electric by 2030 to a revised goal of 50 percent.
This decision follows considerable pressure from automotive industry leaders and labor unions, who have argued that the original mandate threatens British manufacturing jobs and investments. Industry executives, including those from companies such as Hyundai, cautioned that maintaining the 80 percent threshold could prompt them to withdraw investments or exit the UK market altogether, raising concerns about significant job losses.
The target for all-electric vehicle sales was initially introduced in 2020 under former Prime Minister Boris Johnson’s government, with measures taking effect this year. Past requirements mandated that at least 22 percent of new car sales be electric in 2024, increasing to 28 percent in 2023, and projected to reach 33 percent in 2026. The original plan stipulated a steady escalation of electric vehicle sales targets to achieve 80 percent by 2030, by which time sales of new petrol and diesel cars would be banned, allowing only hybrid vehicles to fill the remaining 20 percent.
Starmer’s move represents a notable policy shift and a softening of the government’s previously stringent timeline on decarbonizing road transport. It also reflects growing tensions within the cabinet, as Miliband has faced increasing pressure to ease certain environmental policies, including those related to oil and gas exploration, in order to support economic growth and safeguard employment.
The revised target underscores the challenges governments face in balancing ambitious climate goals with economic and industrial considerations, particularly in sectors heavily reliant on current technologies and supply chains. The details of how the reduction from 80 to 50 percent will impact the broader net-zero agenda and the automotive industry’s transition remain to be clarified in the forthcoming announcement.
