Government to inject millions into electric vehicle firms despite mandate backlash
The government will invest £65m into firms producing zero-emission vehicles, despite backlash from the automotive industry over its controversial electric vehicle mandate.
The funding includes £50m for car firms and research partners to help produce electric vehicles at a larger scale. The Department of Business, Innovation, Science and Trade said the funding would support 1,800 jobs.
The investment is set to be matched by the automotive industry.
The funding is part of the government’s £4bn Drive35 programme, an initiative intended to speed up the electrification of the car industry.
Industry minister Blair McDougall said: “Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too.
“This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.”
Recipients of the funding include a consortium led by Bentley as well as Nissan, which is focused on self-driving cars.
Mandate backlash
The move comes as part of government efforts to phase out the sale of new petrol and diesel cars by 2030 in order to cut emissions and tackle climate change.
But recent reports have suggested ministers are mulling watering down the target to ease the cost of living.
Former prime minister Keir Starmer reportedly overruled energy secretary Ed Miliband in June on the mandate.
Starmer was understood to be prepared to water down the UK’s electric vehicles sales, following pressure from the industry and unions, according to reports in The Sunday Times.
But a government spokesperson insisted Burnham’s government was “committed to the 2030 phase-out date”.
Motoring bosses are continuing to raise concerns that the mandate would force them to pull out of the UK, bringing the prospect of major job losses regardless of the investment into the EV sector.
The British car industry generates £25bn for the economy, and is directly responsible for 183,000 jobs.
“Idiotic ban”
The Conservative party have also hit out at the investment, branding the government’s decision to pursue the 2030 ban as “idiotic”.
Conservative shadow business secretary, Andrew Griffith, said: “When it comes to the automotive sector this government is all handbrake and no accelerator.
“Despite U.K. car making at a 70 year low, ministers insist on an idiotic 2030 ban on combustion engines whilst forcing British car makers to pay billions subsidising Chinese EV competitors.
“Only the Conservatives have clear plans to re-industrialise Britain through cheaper energy, flexible employment and lower taxes.”
The Conservatives have previously called the 2050 net zero target “impossible”, confirming they would scrap the EV mandate if they reentered government.