Labour Expected to Cut UK Electric Vehicle Sales Targets Despite MP Protests

Ministers are expected to approve steep cuts to the government's electric vehicle sales targets this week, easing pressure on carmakers while alarming Labour MPs who worry about the party's commitment to the green agenda. Louise Haigh, the de facto deputy prime minister, is set to finalise the plan after a crunch meeting in Downing Street on Wednesday aimed at settling a long-running dispute between the transport, energy and business departments.

Government sources say Haigh is likely to cut the headline 2030 target for electric car sales by about a quarter, from 80% to roughly 60%, while also extending flexibility measures in the targets until 2034. The move would help British industry but sets up a potential fight with MPs and campaigners over what is regarded as the government's single biggest decarbonisation policy.

The decision will land just as Andy Burnham prepares to travel to his first Cop summit as prime minister, where he and the foreign secretary, Ed Miliband, intend to champion electrification on a global scale. With some MPs already upset by the approval of the Jackdaw gasfield and by cuts to green schemes to fund higher defence spending, many see the upcoming decisions on the Rosebank oilfield and the EV mandate as critically important.

Lizzi Collinge, the Labour MP for Morecambe and Lunesdale, said the decision on the zero emission vehicle mandate "will have a huge climate impact, possibly the biggest one that's on the PM's desk," adding that it would also shape efforts to tackle the cost of living and bring energy prices down over the coming decade. Catherine Fookes, the MP for Monmouthshire, said: "We need the ZEV mandate to stay, and Rosebank to be rejected."

A government spokesperson said: "The government is united in its commitment to the ZEV mandate and no decisions have been taken." The spokesperson restated pledges to phase out new cars relying solely on petrol and diesel engines by 2030 and to reach 100% zero emission new car and van sales by 2035, saying the consultation "will ensure we are taking a pragmatic and balanced approach to the ZEV transition."

Under rules brought in by the last Conservative government, carmakers must sell only electric vehicles by 2035, with the proportion rising gradually to 80% by 2030. The policy is expected to deliver greater emissions savings than any other, accounting for nearly 14% of the reductions the UK has pledged between 2028 and 2032.

Carmakers have warned for years that the interim targets are unattainable, arguing that higher inflation and a squeeze on living standards have pushed them out of reach. The Society of Motor Manufacturers and Traders says the industry will miss this year's 33% target by a wide margin, with battery EVs accounting for 26.6% of new car sales in the first 10 months of the year, although exemptions let firms avoid fines by selling more hybrids or making up shortfalls with higher sales in future. Mike Hawes, the SMMT's chief executive, said the gap between demand and mandated targets "continues to widen" and that "meaningful change to the trajectory, alongside expanded flexibilities" was essential to safeguard jobs and investment.

The government launched a review of the policy in August with five options, ranging from keeping the mandate unchanged to cutting the 2030 target to 50%. Business secretary Jonathan Reynolds has argued for a reduction as far as 50%, transport secretary Heidi Alexander is believed to favour about 60%, while energy secretary Miatta Fahnbulleh and her predecessor Ed Miliband are understood to want 80% retained. Burnham has recused himself from the decision because his wife, Marie-France van Heel, advises the board of Be.EV, a Manchester-based electric vehicle charging network.

Government insiders say Haigh will probably sign off a 2030 target of about 60% and has told colleagues she does not want them returning in future to demand another reduction. Shane Brennan, chief executive of the trade association ChargeUK, warned that weakening the mandate "puts £1.7bn of charging infrastructure at risk" and would rock investor confidence. Paul McNamee, director of the Labour Climate and Environment Forum, said a significant weakening would be seen as "a rowing back on climate leadership" and urged assurances that the mandate will not be weakened again and that the 2035 target remains in place.