Labour makes U-turn over petrol and diesel crackdown due to 'profound concerns'

The Labour Party government has u-turned over a petrol and diesel crackdown, Jonathan Reynolds has said. Speaking to car manufacturers at the Society of Motor Manufacturers and Traders (SMMT) annual dinner, Labour Party MP Reynolds said he was "profoundly concerned" about how the Zero Emissions Mandate meant to phase out new petrol and diesel vehicles were operating.

Mr Reynolds confirmed a "fast-track" consultation will be established with updates to the system likely. Speaking at the Society of Motor Manufacturers and Traders (SMMT) annual dinner, Mr Reynolds accepted that officials had heard "loud and clear on the need for support to make this transition a success".

He said: "I'm going to be frank with you - I don't believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to. We get the seriousness of the situation and we get the urgency."

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The Business Secretary emphasised that the Government remained "absolutely committed" to the 2030 target for phasing out new petrol and diesel vehicles. Ford UK’s managing director Lisa Brankin welcomed the review, saying: "The end goal is not in question, but current demand for electric vehicles is lower than expected."

Nissan has also called for urgent changes, warning the mandate risks "undermining the business case" for UK manufacturing and threatening thousands of jobs and billions in investment. Quentin Willson, founder of FairCharge, said: "Ministers should not dilute the UK's EV ambitions. Long-term government policy has made us the second-most successful EV market in Europe - an advantage we should strengthen, not weaken.”

The news comes as Vauxhall owner Stellantis announced plans to close their Luton factory with around 1,1000 workers at risk of losing their jobs. The blow to the Bedfordshire town has been cited as "worrying" by motoring groups.