8:50 am, July 21, 2026
The automotive industry been reacting to Andy Burnham’s arrival at Number 10, with firms urging the new PM to move quickly on electric vehicle policy and tackling a growing skills shortage.
The former Mayor of Manchester was officially named as Prime Minister yesterday (Jul 22) and leading figures from across the the motor trade have been quick to welcome the new premier to the role.
However, they have warned that his opening few weeks could be crucial, amid a number of ongoing challenges for the automotive sector.
With the outcome of the government’s Zero Emission Vehicle (ZEV) Mandate review expected shortly, experts say the results are likely to offer clarity over the new PM’s automotive vision.
Laura Harvey, director of communications and public affairs at Autotrader, told Car Dealer: ‘The most pressing issue for the industry is the outcome of the ZEV Mandate review, and it’s not clear yet where Burnham’s position lies.
‘Although there’s been a lot of progress with the electric vehicle transition to date, it’s still at a precarious point and therefore requires support for the industry and clear and positive messages for consumers.
‘With a greater choice of models at more affordable price points, new EV demand is strong, and as more people gain more confidence with the new technology that’s flowing into healthy levels of demand for used EVs. So whatever the next government announces, what matters is that it sends a clear message of confidence to industry and consumers alike.’
Harvey added that the Autotrader would also like to see greater support for used electric cars and fairer charging costs.
‘It’s not clear yet, the result of the ZEV Mandate consultation will be the most pressing issue that the industry will want clarity on,’ she said.
‘We’d like to see greater levels of support for the used EV market so more people can access cheaper motoring, as well as more equitable charging rates so those without off street parking aren’t at a disadvantage.’
Asked whether Burnham’s arrival in Downing Street represented good or bad news for the sector, Harvey added: ‘What matters is that the new government continues to show support for the electric vehicle transition and remains committed to supporting industry and consumers to make the switch.’
‘Many challenges for the industry, both at home and abroad’
Over recent months, the SMMT has been vocal in its own calls for the ZEV mandate to be changed.
However, the trade body does say that since taking power in 2024, Labour has demonstrated a commitment to automotive manufacturing.
Bosses now want to see Burnham build on the foundations laid by his predecessor Kier Starmer’s government by delivering ‘investment, innovation and high value jobs in every part of the UK’.
Chief executive Mike Hawes said: ‘On behalf of the UK automotive industry, I congratulate Andy Burnham on becoming Prime Minister and wish him every success as he forms his new government.
‘The Labour Party has already demonstrated its commitment to automotive manufacturing through the Industrial Strategy and, building on those foundations, the sector can be a powerful engine for growth, delivering investment, innovation and high value jobs in every part of the UK.
‘There remain many challenges for the industry, both at home and abroad, but if we strengthen our competitiveness and provide greater support for the transition to net zero, we can drive reindustrialisation and economic renewal in every region and nation of Britain.
‘We look forward to working with the Prime Minister and his team to realise that opportunity.’
Changes needed
In his first day in office, Burnham announced a raft of changes to his cabinet, many of which could impact on the automotive industry.
As well as former defence secretary John Healy being named chancellor there was also the announcement of Jonathan Reynolds as the new business secretary and Miatta Fahnbulleh as the new Net Zero minister. Meanwhile, Heidi Alexander will remain as transport secretary.
Reacting to the arrival of the new government, the Institute of the Motor Industry (IMI) warned that a deepening skills crisis needs addressing ‘urgently’.
The body said that a shortage of qualified technicians is now becoming a road safety issue and called on Labour to follow through on its pre-election promise to put automotive at the heart of its plans for growth.
It has now welcomed Burnham’s ‘commitment to re-industrialisation’ but says his party has so far failed to deliver for the motor trade.
Nick Connor, CEO of the IMI, said: ‘We congratulate Andy Burnham on becoming Prime Minister and we genuinely welcome his stated commitment to re-industrialisation and to technical and vocational skills.
‘However, before the general election, Labour promised to champion the motor industry – a sector fundamental to the UK’s economy and its social infrastructure. Two years on, that promise has not been delivered, and the skills gap in our sector has become a road safety issue.
‘Vehicles are changing faster than at any point in history – electrification, connected systems, automated driving technology. The people who maintain, repair and recover them must be demonstrably competent, yet apprenticeship starts are falling and qualification levels are nowhere near where demand requires.’