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Starmer Announces 'Bold Changes' To Support British Car Industry Amid Trump Tariffs

Starmer Announces 'Bold Changes' To Support British Car Industry Amid Trump Tariffs
Britain's Prime Minister Keir Starmer has brought back the 2030 ban on diesel and petrol cars.Keir Starmer has promised to “back British brilliance” as he vows to implement “bold changes” to the electric car industry after Donald Trump’s sweeping tariffs.The government will “ensure home-grown firms can export British cars”, according to the prime minister, after the US rocked the global economy last week.The PM said the global trade is “being transformed” and “businesses need a government that steps up”.Explaining the first of a series of interventions expected this week, Starmer continued: “That means action, not words. So today I am announcing bold changes to the way we support our car industry.“This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride.”On Monday, he will bring back the 2030 ban on the sale of new petrol and diesel cars, while regulation around manufacturing targets on electric vehicles will be changed to help with the transition.This is line with one of Labour’s election pledges, as the original 2030 date was pushed back to 2035 by Rishi Sunak’s government.But the party allegedly planned to unveil the changes in summer and has now brought the strategy forward in response to Trump.Some luxury companies, like Aston Martin and McLaren, will be able to produce petrol cars after the cut-off date because they produce so few cars a year, while hybrids will be permitted until 2035.Labour also plans to make it easier for firms who do not meet government-mandated sales targets to avoid fines.Meanwhile, the whole industry will be kept under review until the impact of Trump’s tariffs have been fully realised.Transport secretary Heidi Alexander said these plans would make “the UK a global automotive leader in the switch to EVs”.It comes after the PM warned in the Sunday Telegraph that the “world as we know it has gone”, while chief secretary to the Treasury Darren Jones told the BBC that globalisation has now “ended”.Trump had already announced a 25% tariff on foreign cars imported to the US before declaring a further 10% levy for other British goods last week.The UK technically escaped the tariff storm with one of the lowest rates the White House announced on more than 60 countries – but still far from the complete exemption Starmer’s government had been hoping for.Jaguar Land Rover also announced over the weekend they would be “pausing” US shipments as a new import taxes.Green Alliance’s executive director Shaun Spiers welcomed the news. He told HuffPost UK: “The future of the UK car industry must be electric – or it won’t have one.“The government is right to act swiftly to protect the UK car industry in the face of US tariffs, but it’s important to recognise that China and other countries are racing ahead in EV production.“In the long run, these amendments to pro-growth regulations risk hampering competition, pushing up prices for working families by locking them into dependence on expensive petrol vehicles.“The only lasting solution is for the government to set out a clear industrial strategy — one firmly rooted in a commitment to climate action — to protect UK jobs, and our energy and economic security.”Liberal Democrat transport spokesperson Paul Kohler also backed Starmer’s annoucement, saying it was “right to take urgent steps to support the car industry and the switch to electric vehicles”.But he warned: “This on its own won’t be enough to protect the sector from the impact of Trump’s damaging tariffs.”He urged the government to also explore “better incentives for consumers to buy electric vehicles including VAT cuts for public charging and postponing the planned increase in vehicle tax on electric cars.” The Lib Dem said the PM should be working more closely with European allies too for a “coordinated response to Trump’s trade [war], including possible retaliatory tariffs where necessary”, and called for red tape for car exports to Europe to be cut.Meanwhile, Conservative Andrew Griffith, the shadow trade secretary, said: “This is more ‘Red Ed’ than ‘Red Bull’. Although the government have performed a U-turn, they are firing on half cylinders when nothing less than full throttle to support our car makers is required.”He claimed Labour’s industrial strategy is still “stuck on the grid” and “undermining competitiveness through higher taxes”.Griffith claimed: “This announcement will not undo the damage this Labour government has already caused – hitting the car industry with £200 million in taxes, failing to prepare for tariffs and making every working household £3,500 worse off. Not to mention the employment bill that will take us back to the 1970s. “As Kemi Badenoch has made clear, Net Zero by 2050 is impossible. It would serve Britain well if that was Labour’s starting point, rather than these half baked announcements which won’t make any difference.”Starmer has also spoken to many of his international counterparts who have been impacted by the tariffs over the weekend, and reiterated his disappointment with the levies.Related...Blow For Rachel Reeves As Trump Announces 25% Tariffs On All Cars Imported To AmericaTrump Parades Musk's Tesla Cars Outside White House – Then Buys One'The World As We Knew It Has Gone': Starmer Issues Grim Warning Amid Trump's Tariff Storm
Huffpost uk
about 7 hours ago
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