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 [...]
The British government has pledged £65 million to support firms developing zero-emission vehicles, despite resistance from the automotive industry over a contentious electric vehicle mandate. The funding, part of the £4 billion Drive35 programme, includes £50 million to assist car manufacturers and their research partners in scaling up electric vehicle production.
This investment aims to create 1,800 jobs and is set to be matched by the automotive sector. Industry minister Blair McDougall emphasized Britain's historical leadership in the motor industry and the need to continue the next generation of vehicles domestically. Recipients of the funds include a Bentley-led consortium and Nissan, which is concentrating on self-driving cars.
The government's aim is to phase out the sale of new petrol and diesel cars by 2030 to reduce emissions and combat climate change. However, there have been calls to soften the target amid concerns about the impact on living costs. Former Prime Minister Keir Starmer reportedly considered easing the target in June, following pressure from industry and unions.
Yet, the government maintains its commitment to the 2030 phase-out date. Automakers are skeptical, concerned that the mandate could lead to job losses. The British automotive industry contributes £25 billion to the economy and directly supports 183,000 jobs. Conservative party members have criticized the government's decision to pursue the 2030 ban, calling it "idiotic" and arguing that it will harm the British automotive sector.
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