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Starmer Cuts UK EV Target to 50% Hybrid Share

Financial Times Companies •
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Sir Keir Starmer is set to soften Britain’s electric‑car mandate, allowing 50 % of new sales to be hybrids instead of the current 20 %. The change comes after talks with industry leaders, business secretary Peter Kyle and union chiefs worried about job cuts from stricter green rules.

Under the existing zero‑emission vehicle (ZEV) rule, 80 % of new cars must be fully electric by 2030, with hybrids covering the rest. Starmer’s proposal halves the electric quota, setting hybrids at 50 % and retaining the 2030 end‑of‑sale pledge for internal‑combustion engines in the new‑purchase market, while older vehicles remain unaffected as the policy shift unfolds.

Automakers warned the original mandate would curb UK investment, forcing steep discounts or carbon‑credit purchases from rivals like Tesla and BYD. Industry voices say the revised target will ease pressure but call for clearer hybrid definitions. Labour’s move comes after a 2027 review deadline was moved forward, prompting a swift parliamentary debate on policy direction.

Opponents fear a relaxed target could confuse consumers and undermine firms that have poured resources into electrification. Octopus Energy’s Greg Jackson blasted the decision as “short‑termist lobbying” that risks delaying charging infrastructure roll‑out. Investors demand certainty; any rollback signals uncertainty about the UK’s transport electrification trajectory deterring future investment in green mobility across the sector.