Britain’s Battery Future Report

Lord Hunt of Wirral Excerpts

Monday 13th April 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The noble Lord is right to highlight the importance of the EU as the largest market for UK-manufactured cars. The EU remains the UK automotive sector’s largest trading partner. We are talking closely with the EU on all aspects of regulatory developments in respect of EU battery rules, the EU digital battery passport and the “Made in Europe” content rules, because we want to continue to press the EU to avoid any detrimental impact on the UK and EU’s automotive sectors, given the integrated UK-EU supply chains.

[Lord Hunt of Wirral (Con)]

My Lords, according to the Society of Motor Manufacturers and Traders, the Government’s EV mandates imposed an industry-crushing £6 billion-worth of costs on manufacturers in 2024 alone. This is putting the 183,000 jobs which this sector supports at considerable risk. If the Government want the EV transition to endure, surely, they must proceed at a pace that industry can bear. Is it not now time to reverse these mandates, as the Official Opposition, I am happy to confirm, are committed to doing? Can we not now bring industrial policy back in line with economic reality?

[Baroness Lloyd of Effra (Lab)]

We are monitoring the performance and efficacy of the ZEV mandate and last year we introduced additional flexibilities, providing manufacturers with more tools to decarbonise in a way that protects jobs and boosts investment. We have a large range of measures to support people to transition to zero-emission vehicles, including salary sacrifice schemes, generous company car tax rates for electric vehicles and the new electric car grant, as well as support for local EV infrastructure to support the transition.