Prominent fleet and automotive stakeholders set out their calls for action following Labour’s victory in the general election.
Labour’s landslide UK election victory not only brings a crushing end to 14 years of Conservative rule but also likely spells big changes for the fleet and automotive sector, which has spoken out about where action is needed.
Keir Starmer has spoken of an “age of national renewal” in which his administration will “start to rebuild our country” – and the fleet and automotive sector is already having its say on areas that need renewing and rebuilding.
Labour’s election pledges included its previously announced commitment to restore the 2030 ICE phase-out for cars, supported by accelerating charge point rollout and aiding second-hand EV buyers by standardising the information supplied on the condition of batteries.
Labour has also said it would secure the future of Britain’s automotive and steel industries through its National Wealth Fund, which includes an allocation for £1.5bn to new gigafactories “so our automotive industry leads the world”.
The party also pledged to renew the roads network, which fixing an additional one million potholes across England in each year of the next parliament, funded by deferring the A27 bypass in Sussex.
Labour also said it would support drivers by tackling the soaring cost of car insurance and would deliver a new road safety strategy.
But what do the industry experts say and what are their hopes and priorities for a new Parliament.
Fleets, taxes and the EV transition
Gerry Keaney, chief executive of the BVRLA
“We congratulate Keir Starmer and his party on their strong election win. The change of government brings a change of direction. After a period of great political uncertainty, the industry collectively hopes for stability that will allow action to be taken and progress to be achieved.
“The time for blanket decarbonisation policies has been and gone. As the transition towards cleaner, greener vehicles evolves, the need for specific interventions becomes clear. Up to now, powerful tax incentives for company-provided cars have accelerated adoption among fleets but left retail and rental lagging. For the transition to be embraced by all sectors, targeted action is needed. Charging infrastructure, the used market, and vans are just three of the areas demanding closer attention.
“Guided by our members, we will continue to be a clear voice for the sector and its needs. Our work around the rental sector, used BEV market and transition to electric vans will ramp up as we continue to grow our influence with the Labour government and the key departments shaping UK transport.”
The Association of Fleet Professionals
The Association of Fleet Professionals (AFP) has said that an announcement on extended company car Benefit-in-Kind taxation tables should be “among the first fleet jobs” for the new government – and called for a moderate approach to tax rises.
The industry body said it is now nearly two years since the current tables were announced and they only run until the 2027/28 tax year, meaning fleets buying vehicles today don’t know the tax rate their drivers will be charged towards the end of the decade. It’s calling for Labour to include extended tax tables in its first Budget or fiscal statement.
Paul Hollick, AFP chair, also said that while the AFP broadly accepted Benefit-in-Kind rates on electric company cars would increase over time as they became widespread on fleets, it was important to maintain an incremental approach as it warned that the sector was now entering a more difficult phase for electrification.
The AFP has also called for more details on Labour’s manifesto proposals. Its main points are:
- The 2030 EV production deadline is now of limited importance compared to the ZEV mandate, which is really the main control mechanism affecting EV sales in the UK. It would be useful to know whether Labour intends to keep the same rate of adoption as currently stipulated.
- Accelerating the rollout of EV charge points would be welcome but clarity on measures and targets is needed. Labour has previously talked about removing planning restrictions and providing better guidance to councils, and these measures could have an effect. Especially, there needs to be much greater emphasis on getting chargers in the right places.
- A government-standardised battery health check would undoubtedly be very useful, but almost certainly needs a degree of financial support, such as through used EV grants or low-cost loans.
- Uncertainty over fuel duty would be a worry for some fleets – the party has previously failed to rule out future releases. After more than a decade of fuel duty freezes, fleets have very much become accustomed to taxation at the current rate and any increase will be very much unwelcome at a time when company transport budgets are very much under pressure.
David Savage, Geotab VP for UK and Ireland
“Congratulations to our new PM Keir Starmer and the Labour Party, but we believe they need to go further on EV than the pledges included in their manifesto. Reinstating the ICE ban is welcome, but we also need meaningful incentives to drive more private and fleet buyers into electric cars and vans, such as grants and charging initiatives.”
Jon Lawes, managing director at Novuna Vehicle Solutions
“Businesses need stability and confidence, so it’s vital the new Labour government urgently takes decisive action to address prevailing uncertainty on transition goals and provide cast-iron EV adoption deadlines for vans as well as cars.
“Addressing the fundamental barriers to EV adoption through policy incentives and charging infrastructure investment need to be priorities in the in-tray for the new government.”
Adam Hall, director of energy services at Drax Electric Vehicles
“The new Labour government’s priority must be to build on the growing momentum towards net zero and to support the EV industry to develop in a way that makes it work for everybody.
“Fast and accessible charging for all vehicle types – including vans and HGVs – along with government grants and subsidies are a key part of instilling confidence among businesses and consumers, making the prospect of switching to an EV an attractive one.
“Fleet-operating businesses, who continue to be the driving force behind EV market growth, require clarity around future rates and taxes to help inform their decision-making. We’d therefore urge the government to prioritise the publication of company car tax (CCT) rates for 2028 and beyond and give confirmation that the Plug-in Van Grant and Workplace Charging Scheme will continue past March next year.
“At the same time, we’d ask them to explore other ways in which we can reward and incentivise businesses who invest in EVs and renewable energy infrastructure.
“We’d also like to see a continued commitment to the implementation of the standards set out in the 2023 Public Charge Point Regulations, such as a 24/7 helpline for drivers and mandatory contactless payment options. There’s also an urgent need for more accessible charging, particularly for van drivers and disabled drivers, to ensure that everyone has the same positive experience while topping up their vehicle.”
Richard Staveley, CEO, EO Charging
“Transport is responsible for almost a quarter of global emissions, with commercial fleets accounting for a large proportion of this. Emission-free transport is essential to ensuring the UK meets its net zero mandate, so making the transition to electric vehicles (EVs) will be a crucial component.
“We already know that developing and investing in the right infrastructure to support electrification is important, but focusing on the electrification of commercial and public sector fleets is fundamental. We need to see Labour developing and implementing a strategy that tackles the challenges to EV adoption and creates long-term reliable funding, particularly for commercial and public sector fleets, which stand to have the greatest environmental impact.
“Due to the high initial costs of electrification, commercial and public sector fleets often rely on local governments to distribute EV funding. We’ve already seen a dramatic positive impact from initiatives such as the Zero Emission Bus Regional Areas (ZEBRA) scheme that have enabled bus operators to electrify their fleets at pace. Introducing similar schemes to support commercial fleet electrification will undoubtedly have a positive impact and will accelerate EV fleet adoption. If funding does not materialise, this will delay fleet electrification, and achieving net zero goals will become incredibly difficult.
“Labour must commit to a robust funding strategy that transcends local politics and ensures a stable environment for fleet operators to transition to EVs. Exploring alternative funding models such as Scotland’s direct-to-operator approach, which streamlines the process and empowers fleets to use resources effectively, could be another answer.”
Thom Groot, CEO of the Electric Car Scheme
“If Labour is going to have any chance of fulfilling the laudable, but ambitious, reintroduction of the 2030 ZEV mandate, they need to do three things right away. Extend low BiK rates until 2035 at 5%. Lower the VAT on public charging to 5% to bring it in line with the cost of electricity at home. And avoid the temptation to impose tariffs on affordable EVs from outside the UK. They don’t do us any favours in terms of reaching Net Zero and don’t solve other problems.
“We know from our research that for 68% of Brits affordability is the biggest barrier to getting an EV and 53% feel they can’t afford to cut their carbon footprint, so we need to be doing all we can to bring down cost.”
Roads and motoring
The RAC
The motoring services organisation is calling for the new Labour government to urgently tackle the most pressing concerns of the UK’s 40 million motorists in its new transport policy.
The poor state of local roads, rising insurance premiums and stubbornly high fuel prices are the top three concerns for drivers in the forthcoming RAC Report on Motoring 2024. The organisation says these, along with four other key issues, are top priorities for the Government:
- Improve local roads
- Reduce the motor insurance tax burden
- Make fuel prices fairer
- Cut road casualties
- Support the transition to EVs
- Ensure civil motoring offences are enforced fairly
- Make paying for parking easy for all
RAC head of policy Simon Williams 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.”
He added: “We look forward to working constructively with the new government on all the major issues affecting the nation’s drivers.”
Automotive sector and manufacturing
Mike Hawes, chief executive of the SMMT
“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.”
Philip Nothard, insight director, Cox Automotive
“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.”
UK charging infrastructure
Mike Nakrani, CEO, VEV
“The new government’s pledge to reinstate the 2030 ICE ban and accelerate EV charging infrastructure, is a positive signal for the e-mobility industry. Whilst commercial fleets are already leading the way in the transition from diesel to EVs, this is reliant on fleet-owners building their own charging infrastructure in their depots.
“Transport and logistics suppliers are key contributors to scope 3 carbon emissions, moving goods and services through the country’s supply chains, and they need a network of charging infrastructure across the country – ‘green corridors’ – or funding support to build it.
“The new government’s pledge to deliver £1.8bn investment in our port infrastructure would be a key element of the UK’s net zero journey. As hubs that feed our supply chains and the economy itself, ports are talking to us about how electrification of their supply chains will be a major step forward in UK decarbonisation.”
Antoine Picron, senior policy manager for UKI at ChargePoint
“A change in government represents an exciting opportunity for the EV industry, with the incoming government already promising to reinstate the 2030 ICE mandate.
“With more EV drivers on the roads than ever – a massive 377% increase in registered vehicles on UK roads compared to four years ago – a government more interested and invested in this EV is a welcome sign.
“There is huge opportunity to develop the UK’s charging infrastructure and charge point rollout across the country, hastening the adoption of EV by consumers and addressing the current reality that there are not enough public EV charging stations and the utilisation pressure on them will continue to grow as a result of organic EV adoption, as well as adoption driven by this mandate.”
Four ideas from Asif Ghafoor, CEO of Be.EV
- Labour should introduce a simple mandate that compels every local authority to open up 50% of their land for private companies to install EV chargers. They don’t have the capital or expertise to do it themselves. We don’t want any more rules or changes – that’s a headache for everyone.
- There needs to be some encouragement to drivers, and we have a few options here. We could reduce the power cost for those who switch and get rid of the VAT on public EV charging costs. Norway is a good example. They gave free exemptions to the toll for EV drivers and gave free local authority parking as well. These aren’t expensive and they went a long way in creating a more positive feel about EVs.
- The Government should set clear targets that each DNO needs to deliver a certain amount of power to chargers on an annual basis or they get fined! It’s simple – we need more of a focus on installing faster chargers and put the pressure on DNOs to get them to speed up the transition.
- The LEVI fund has been a complete waste of time and needs to be scrapped. It means local authorities spend a lot of time faffing around unnecessarily for very little progress.
Transport and logistics
Sue Percy, chief executive, at the Chartered Institution of Highways and Transportation (CIHT)
“CIHT congratulates the Labour Party on forming the new UK government and looks forward to engaging with them over the next few months. This is undoubtedly a time for change and a new clear and vision-led approach is needed from politicians and local and national governments.”
“Transport is politically challenging, and yet it plays a crucial part in our futures. People and goods need an effective transport network to support economic activity and social wellbeing.”
“Good transport provides access to employment, goods, services and opportunities. How society invests in and uses the transport network also has major impacts on climate change and public health.
Remarketing
The Vehicle Remarketing Association (VRA)
The VRA has said priorities for the new government should include a focus on electrification and investment in the UK motor industry but added that the trade body was also interested in what Labour would do to enable training within remarketing and across wider industry.
Philip Nothard, chair of the VRA, said: “Like other sectors, we are facing skills shortages and we’d like to see more done to help us attract and train the people that we need for the future. This is a problem that will affect the development of the industry going forward and needs attention.
“We appreciate that all of these measures are probably not high on the agenda for the new administration or part of their ‘first 100 days’ plan to hit the ground running. However, they are priority areas that need attention for remarketing to succeed and where we’d like to know about the new government’s plans as soon as possible.”
Automotive aftermarket
Kevan Wooden, CEO at car parts business LKQ UK & Ireland
“We look forward to a new government bringing a fresh policy perspective in the interest of delivering a sustainable, prosperous future for the independent aftermarket.
“Starmer’s plans to restore the 2030 phase-out date for new cars with internal combustion engines (ICE) will have the most immediate impact on the industry. Some in the aftermarket had delayed investment plans for retooling and reskilling, but it will now be imperative for garages to kickstart their transition as to not miss out on electric vehicle custom.
“The industry will want to learn how the EV skills gap can be plugged through Labour’s proposed body Skills England. A blend of automotive skills strategy and private training will be key to meeting the aftermarket’s future talent needs, and we’re well underway expanding the LKQ Academy to support this.
“The introduction of a standardised battery health certification scheme for used vehicles under Labour could also represent a new income opportunity for garages, incentivising them further to upskill and retool for servicing plug-in vehicles sooner rather than later. Garages and workshops will eagerly anticipate more details on the scheme.”
Energy solutions and gigafactory plans
Richard Moore, battery strategy expert at Greenpower Park – the West Midlands-based centre of electrification and clean energy
“Sir Keir Starmer and his party have made clear commitments to creating a gigafactory, and associated supply chain, in the West Midlands and accelerate the UK’s transition to an electrified future.
“From automotive to energy storage, there is an urgent need to secure global battery manufacturers along with the associated supply chain to meet the growing demand for electrification in the UK.
“Electrification, across all sectors, is of strategic importance for the UK and it needs to be part of the new Government’s broader industrial strategy which will ensure that potential investors consider the UK in the future.”
Hydrogen future
Robin Futcher, CEO at Commercial Fuel Solutions
“Labour’s win could fuel the UK’s hydrogen industry. Their green energy focus aligns with the industry’s 10GW green hydrogen goal by 2030. The proposed £500m fund and swift policy action would attract investors. To capitalise, the new government should prioritise confirming HAR2 plans, decisions on hydrogen use, and a long-term demand strategy. These steps will accelerate the UK’s hydrogen sector and solidify its global position.”
Taxi sector challenges
Chris Allen, managing director, LEVC
“LEVC congratulates the Labour Party and welcomes the new Government. The new Prime Minister and his party have made a promise to accelerate the UK’s transition to an electrified future, including a pledge to reinstate the 2030 ICE ban which we welcome. However, to deliver on this ambition and seize the opportunities for manufacturing growth that will enable it, we need targeted consumer incentives to continue for commercial and niche vehicle drivers, including for taxis.
“More than half of London’s black cabs are now zero-emission capable – with uptake growing in towns and cities nationwide. To keep momentum, the new Government must continue the Plug-in Taxi Grant beyond the current financial year. Removing VAT from public charging networks will also keep costs down for business (and private) users to help ensure switching to an EV is an equitable choice for those without access to home charging.
“LEVC also calls on the new government to outline a clear industrial strategy to provide some much-needed certainty to help secure investment in the UK. This investment will be critical to driving supply chain development and helping to maximise the input of the country’s high skills base and manufacturing excellence. These elements will be key in affirming the UK’s relevance in the developing global automotive landscape. LEVC looks forward to working with the new Government to further accelerate the adoption of clean and accessible public mobility solutions.”
Sam Pooke, senior public affairs manager at Freenow UK
“On behalf of Freenow, we would like to congratulate the Labour Party for winning the 2024 General Election. The newly elected Labour government has a lot of work to do when it comes to VAT treatment for private hire journeys to ensure the regime is fair and there is a level playing field across the industry.
“We encourage the new government to work closely with the Mayor of London to tackle existing challenges in the taxi sector, particularly reversing the declining number of black cab drivers and the high cost of EV vehicles to ensure this iconic trade can thrive and continues providing its outstanding service to Londoners and visitors.”
