10:53 am, July 5, 2024
So the campaigning is over, the votes have been counted and the result is clear. The Tories are out and Labour have won an historic landslide.
But what does that mean for the automotive sector? In the lead up to the election Car Dealer reported on all the main parties manifestos and what they promised for the industry.
Among the main pledges from the now victorious Labour Party were reinstating the 2030 ban on new petrol and diesel vehicles and ‘standardising the information supplied on the condition of batteries’.
But now that Keir Starmer’s party is officially set to take office, what is the automotive industry expecting from the incoming PM and his team?
Auto Trader is calling on more support for the transition towards electric vehicles, including targeted incentives to drive further adoption.
The firm also wants to see ‘transparency about future changes in road pricing and taxes for electric cars so consumers can plan accordingly’.
Ian Plummer, commercial director at Auto Trader, said: ‘All too often in the recent past, we’ve seen short term political advantage prioritised at the expense of the serious long-term decision-making the country needs to meet net zero goals.
‘Given the size of their mandate, we’d like to see Labour do more to support the transition to greener vehicles.
‘That means protecting the existing salary sacrifice and BIK incentives to support the new electric car market, and targeted financial incentives on used electric cars to support greater adoption.
‘We also need to be proactive and transparent about future changes in road pricing and taxes for electric cars so consumers can plan accordingly, as well as supporting the industry to install more chargers by speeding up planning and encouraging more creative ways to charge EVs near people’s homes.’
Cox Automotive has also welcomed the new government and called for ‘leadership and sustainable support’ during a period of ‘seismic change throughout the automotive ecosystem’.
Philip Nothard, insight director at Cox Automotive said: ‘We welcome this new government.
‘We ask that it gives the automotive sector – as a major UK employer, an integral part of the nation’s industrial strategy, a significant contributor to the treasury and a key component of our net zero commitments – the attention and backing it deserves.
‘This is a time of seismic change throughout the automotive ecosystem. Without leadership and sustainable support from the government, the sector will be compromised in its ability to meet its full potential.’
[Jeff Moore/PA Wire/PA Images]
SMMT backs incoming government as RAC lays out demands
The SMMT and the RAC – two of the automotive industry’s biggest bodies – have also been commenting on the result this morning.
The SMMT says that Labour’s plans for the automotive industry can ‘boost manufacturing competitiveness, enhance trade relations and support consumers’.
The trade body added that it is looking forward to working alongside the new government to ‘ensure the long-term success of the sector’.
Mike Hawes, SMMT chief executive, said: ‘We congratulate Sir Keir Starmer and the Labour Party on their election success.
‘The new government’s commitment to an industrial strategy and its already published Automotive Sector Plan can boost manufacturing competitiveness, enhance trade relations and support consumers.
‘The industry is fundamental to the achievement of net zero which, with the right conditions, will deliver the growth the economy needs.
‘We now look to continue our productive partnership with government to ensure the long-term success of the sector and all those who depend on it for their mobility, services and livelihoods.’
Meanwhile, the RAC has urged the Labour to ‘quickly tackle the nation’s biggest motoring concerns’.
The automotive services company has listed improving local roads, reducing the motor insurance tax burden and making fuel prices fairer as some of the key areas the government should be focussing on.
It also demanded that Labour cut road casualties, support the transition to EVs, ensure civil motoring offences are enforced fairly and make paying for parking easy for all.
Simon Williams, RAC head of policy, said: ‘Roads ravaged with potholes. Drivers ripped off at the pumps. No progress on reducing road casualties.
‘To say the incoming Transport Secretary has a lot to address is a huge understatement, but a new Parliament is a huge opportunity to improve the lives of all road users.
‘Top of the list has to be the thorny issue of fixing Britain’s broken roads which will sadly take far more money than the promised £320m from scrapping the A27 Arundel bypass.
‘The roads funding hole will be even bigger if the previous government’s commitment to spend £8.3bn from the cancelled northern leg of HS2 on improving roads isn’t honoured.
‘There are some clear quick wins the new government can take advantage of, should it choose to. The recently legislated Pumpwatch fuel price monitoring scheme must be introduced quickly to give drivers a fairer deal on the forecourt and the official government Private Parking Code of Practice, which will protect drivers from being taken advantage of by unscrupulous parking operators, finally needs to be pushed over the line after five years of delays.
‘We also want to see the National Parking Platform rolled out as soon as possible so drivers can use one app of their choice to pay for all their parking.
‘Alongside this, we want a firm commitment from the government to ensure drivers always have at least two means of payment. As surprising as it might seem, cash is still the preferred payment method for many.
‘We look forward to working constructively with the new government on all the major issues affecting the nation’s drivers.’
IGA wants updated apprenticeship policies
Also welcoming Starmer and Labour has been the Independent Garage Association (IGA), which says it is eager to discuss ‘strategic actions and policies that will support and enhance our industry’.
The association says that a key area of focus should be to address the ‘unique challenges faced by the automotive industry in terms of apprenticeships’.
A spokesman for the IGA said: ‘The Independent Garage Association (IGA) extends congratulations to the Labour Party on their recent election victory.
‘We look forward to engaging with Sir Keir Starmer and his team to support the independent garage sector. As we move forward, the IGA is eager to discuss with the Labour government the strategic actions and policies that will support and enhance our industry.
‘Key areas of focus include attracting new talent and addressing the unique challenges faced by the automotive industry in terms of apprenticeships.
‘The sustainability and growth of the independent garage sector depend on the ability of the sector to attract and retain skilled professionals.
‘As the industry evolves with new innovations, it is essential for independent garages to adopt these technologies to meet the growing demand for the repair and maintenance of zero-emission vehicles.
‘We are eager for initiatives that provide garages with the tools and knowledge needed to embrace these advancements, in line with the government’s zero-emission vehicle mandate, which became law on 3 January, 2024.’
Stuart James, IGA chief executive, added: ‘The independent garage sector is vital to the economy, managing 70% of the UK’s vehicle service and maintenance work.
‘It is essential that apprenticeship policies take into account the unique challenges and opportunities this sector faces as automotive technology advances more rapidly than ever before.’
