BEIS Committee calls for sales of new diesel and petrol cars to end in 2032

The Business, Energy and Industrial Strategy (BEIS) Committee has published a report which describes the Government's 2040 targets for zero emission cars as 'vague and unambitious'. It calls for the Government to bring forward a 'clear, precise target for new sales of cars and vans to be zero emission by 2032' (similar to the targets set in Scotland). Meanwhile, the Committee on Climate Change has also called for accelerated ambition on EV introduction.

 

The BEIS Committee Chair, Rachel Reeves MP, said: "Electric vehicles are increasingly popular, and present exciting opportunities for the UK to develop an internationally competitive EV industry and reduce our carbon emissions. But, for all the rhetoric of the UK becoming a world leader in EVs, the reality is that the Government’s deeds do not match the ambitions of their words.

 

"The IPCC report was clear on the need to encourage changes in consumer behaviour, including increasing the switch to electric vehicles, to help decarbonise our economy. But the UK Government’s targets on zero-emissions vehicles are unambitious and vague, giving little clarity or incentive to industry or the consumer to invest in electric cars. If we are serious about being EV world leaders, the Government must come forward with a target of new sales of cars and vans to be zero emission by 2032."

 

The report finds that the current fiscal regime for EVs provides inconsistent messages about the Government’s ambitions for EVs and recommends that the Government aligns new fiscal changes with the zero emissions target. The Government should ensure buyers of electric vehicles benefit from preferential Vehicle Excise Duty rates and that the introduction of preferential rates on company car tax for EVs is brought forward without delay. It says that the Government should have maintained Plug-in Grants for new electric vehicles at current levels, rather than cutting them.

 

The Committee says that the report recognises the importance of the British car industry and the need to move ahead with the transition to electric vehicles if the automotive industry is to remain globally competitive. It calls on the Government to work to create an attractive investment environment that will encourage manufacturers to locate new EV facilities in the UK.

 

On battery manufacturing, the Committee says that other countries have already taken a substantial lead in this area and suggests that seeking to catch-up on this activity would leave the UK on the back foot.

 

It says that the UK can better capitalise on industrial opportunities if there is an aggressive targeting of high-value aspects of the EV and battery supply chains where the UK already holds comparative strengths. There also needs to be a focus on reskilling the existing car industry workforce so they are equipped to help lead the transition to mass use of electric vehicles.