Zero Emission Vehicle Mandate
Debate between Gareth Bacon and Lindsay Hoyle(3 weeks, 3 days ago)
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Gareth Bacon (Orpington) (Con)
Thank you very much, Mr Speaker. I will not embarrass myself by announcing how old I am, but it is far too old.
Gareth Bacon
I thank the Secretary of State—[Interruption.] That was a very helpful intervention by the hon. Gentleman; he is completely right. I thank the Secretary of State for her statement, and for advance sight of it. The announcement by the United States of America that 25% tariffs will be imposed on UK automotive exports has understandably caused significant concern in the automotive sector. Automotive manufacturers now face tariffs of 25% on around £8 billion-worth of car and auto parts exports—a potentially devastating blow for the automotive industry. I assure the Secretary of State that we will support the Government when they do sensible things to reverse the impact on our already fragile economy. In that vein, I am glad that the Government have recommitted to negotiating a better deal with our closest ally and largest single-country trading partner, and I sincerely hope that they are successful in their negotiations.
However, on the substance of the right hon. Lady’s statement, I cannot share her enthusiasm for the rest of Labour’s plans. The reality is that today, Labour is simply trying to clear up the uncertainty that it has contributed to. When the previous Conservative Government reacted to sluggish automotive trade figures by making the pragmatic decision to delay the ban on new diesel and petrol cars from 2030 to 2035, aligning the UK with major global economies such as France, Germany, Sweden and Canada, Labour accused us of undermining the automotive industry. This morning, the Secretary of State criticised the previous Government for chopping and changing, and a consultation put out by Labour claimed that our policies caused “great harm” to the UK’s reputation as a leading nation in the EV transition by moving the goalposts. However, that is precisely what Labour did upon taking office by ideologically reversing the 2035 deadline. The plans announced over the weekend do not place the automotive sector in a better position than it was when we left office, despite some minor adjustments to the zero emission vehicle mandate.
What is more, this announcement will not undo the damage that this Labour Government have already caused. Their introduction of a £25 billion national insurance jobs tax in their first Budget was a major blow to businesses; we have warned for months that this tax will harm industries, and the automotive sector is no exception. The Secretary of State will know that US tariffs on UK car exports are set to cost the automotive sector £1.9 billion. Combined with the Government’s jobs tax—which is predicted by the Office for Budget Responsibility to put 50,000 jobs at risk, and is likely to cost the automotive sector an additional £200 million—that double whammy is going to be very difficult for the sector to absorb.
Indeed, despite today’s announcements, the Society of Motor Manufacturers and Traders has stated that zero emission vehicle mandate targets remain “incredibly challenging”. In its words:
“ZEV Mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval. Growing EV demand to the levels needed still requires equally bold fiscal incentives…to give motorists full confidence to switch”,
but that is not what the Government are offering. Instead of the “bold changes” that the Prime Minister boasted of at the weekend, what we have is mere tinkering at the edges. Allowing producers of luxury vehicles, such as Aston Martin and McLaren, to be exempt from the 2030 ban on the sale on new internal combustion engine vehicles is welcome, as is the news that all forms of hybrid cars will be available until 2035. However, this does not go anything like far enough. The Government are still proposing to increase the level of tax liability on the value of hybrid company cars by as much as 16%, which could potentially cost individual drivers thousands of pounds each. The reduction in fines for missing EV sales targets from £15,000 to £12,000 per vehicle is nothing to be celebrated—it is like drowning at the depth of 100 metres instead of 120 metres.
Over the past few months, we have heard from numerous businesses that they simply cannot cope with the ZEV mandate. In October, the chief executive officer of Jaguar Land Rover warned that the mandate was causing severe disruption to the new car market. Not long after, Vauxhall announced the closure of its Luton factory, citing the ZEV mandate as a key factor in making that plant economically unviable. More recently, uncertainty has surrounded Plant Oxford, the home of the Mini since 1959. Last year, excluding fleet sales, the fact is that only 10% of private purchases of new vehicles were electric. Far from doing retailers a favour, the Government’s offer to fine them a small amount less for failing to sell a product that consumers demonstrably do not want is a kick in the teeth to the automotive industry.
I must therefore ask the Secretary of State the following questions. With just one in 10 private buyers purchasing an electric vehicle in 2024, why are the Government still trying to force people to buy something for which there is limited consumer demand at present? Is she really pretending that any of the measures announced today were not already in train before the tariffs were announced? Will she commit to reversing the hike in the hybrid company car tax? Does she really think that reducing the fine for each car that fails to comply with EV quotas will be enough to mitigate the impact of tariffs? Does she not believe that, rather than chasing an arbitrary timeline, now is the time for a more gradual transition to electric vehicles, one that would allow the sector to mitigate many of the challenges it is currently facing? Finally, does she recognise that the combined impact of the ZEV mandate, the jobs tax and external tariffs is a perfect storm for the automotive sector, which is facing significant and exacerbated challenges because of the choices her party has made over the past nine months?
Oral Answers to Questions
Debate between Gareth Bacon and Lindsay Hoyle(1 month ago)
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Gareth Bacon (Orpington) (Con)
When the Government handed the ASLEF trade union an eye-watering £9 billion pay agreement in the summer, they promised that it would
“protect passengers from further national strikes”.
Yet recently the Secretary of State said on national television that
“there will be occasions on which strikes will be necessary”.
Will she provide the House with an example of a necessary strike?
Oral Answers to Questions
Debate between Gareth Bacon and Lindsay Hoyle(2 months, 2 weeks ago)
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Gareth Bacon (Orpington) (Con)
Heathrow airport is already the largest single-site payer of business rates in the country, paying approximately £124 million annually. To fund the Chancellor’s next spending spree, the Valuation Office Agency is currently revaluating airports in England and Wales, and any significant increase could impact Heathrow’s ability to fund airport expansion and a third runway. Is the Secretary of State aware of the latest estimate of how much Heathrow’s business rates will increase by?
Airport Expansion
Debate between Gareth Bacon and Lindsay Hoyle(3 months ago)
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Gareth Bacon (Orpington) (Con)
In recent days we have heard that the Chancellor is about to announce her support for airport expansion at Luton, Gatwick and Heathrow. His Majesty’s Opposition are supportive of airport expansion because we recognise the huge economic benefits that would bring. For Luton and Gatwick, as the Minister has said, planning processes are well under way, but the situation at Heathrow is rather different.
A completed third runway at Heathrow would undoubtedly bring economic benefits, which we would support, but delivering that will not be straightforward because there are major logistical barriers to its construction. Those include, but are not limited to: hundreds of thousands of additional people being brought on to Heathrow’s flightpath; the potential for significant disruption to the M25 and M4, which could harm the economy for years to come; the fact that a large incinerator is in the way and would have to be demolished; and the need to address local concerns about noise and air pollution. The uncertainties do not end there, because to date Heathrow has not applied for a development consent order, and neither has it confirmed that it intends to do so.
That all leaves the Minister with many questions to answer. What assessment has he made of the impact of building a third runway on the M25 and M4, which are two of the busiest motorways in Europe? How certain is he that any proposed plan will have the support of affected communities? What is the estimated cost, and who will pay not just for the runway construction, but for the massive additional work that will need to be done, including, among other things, rerouting motorways, demolishing the incinerator and rebuilding it elsewhere? Perhaps most importantly, what assurances can he provide that there will be an application for a development consent order?
I sincerely hope that the Minister can answer those questions, because if he cannot it will be clear that this is not a serious policy, but rather a panicked and rushed attempt by the Chancellor of the Exchequer to distract attention from the state of the economy, which is currently withering under this floundering Labour Government.
Oral Answers to Questions
Debate between Gareth Bacon and Lindsay Hoyle(3 months, 3 weeks ago)
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Gareth Bacon (Orpington) (Con)
I was appalled to discover this morning that I have known the Secretary of State for the thick end of two decades. We have had various exchanges in various other fora, but this is our first exchange across the Dispatch Box in this House. I therefore warmly congratulate her on her appointment and welcome her to her place.
The Government promised to deliver more reliable rail services, but over Christmas, what did we see? Chaos, cancellation and delays. The train drivers, having accepted the Government’s no-strings pay deal, chose to turn down overtime shifts, leaving passengers stranded and left in the cold. The Government’s no-strings agreement was supposed to bring stability to the railways, but it did the exact opposite, causing major disruption. Will the Secretary of State admit that the pay deal that they thought would improve reliability in fact only made services worse?
Mr Speaker
Order. I say to the Secretary of State gently that I had wanted to welcome her today, but I have to get through a lot of Members. We are on topicals, which are short and punchy. I call the shadow Secretary of State to give us a good example.
Gareth Bacon
I note the Secretary of State’s answer, but, in the real world, we know that the Government’s union paymasters will keep pushing for more. Labour’s plans to scrap the minimum service levels will give the unions more power to hold the railways hostage. Does the Secretary of State accept that the Christmas chaos will not be a one-off, and will in fact be the start of an ongoing decline in reliability?
Oral Answers to Questions
Debate between Gareth Bacon and Lindsay Hoyle(5 months, 1 week ago)
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Gareth Bacon (Orpington) (Con)
On behalf of the Opposition Front Bench, I too offer my sincere sympathies to the family of the late Lord Prescott on his passing.
On Monday, in her statement on bus funding, the Secretary of State said that a formula was being used to allocate funding. She said that the formula will allocate funding
“based on local need, population, the distance that buses travel, and levels of deprivation…This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs”.—[Official Report, 18 November 2024; Vol. 757, c. 43-45.]
The formula, including the weighting given to the various factors by the right hon. Lady, has not been published. When will it be?
Gareth Bacon (Orpington) (Con)
Greater London is the most heavily populated and most economically active area in the whole country. It also has the highest level of bus use. In the last financial year, the level of bus subsidy in London amounted to £646 million. In the Secretary of State’s statement on Monday, of the £1 billion of funding that she indicated, £700 million will be spent on producing bus planning documents, and only £243 million is going to bus services. That will not touch the sides, will it? Is the truth not that, far from it being generational reform, it is publicly funded window dressing?
Oral Answers to Questions
Debate between Gareth Bacon and Lindsay Hoyle(6 months ago)
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Gareth Bacon (Orpington) (Con)
The Government’s impact assessment for the adult social care sector confirmed that collective bargaining will be very costly for business. If pay awards match those of junior doctors, the cost of the increased wage bill will be £5.8 billion, driving up business rates, reducing employment or hours, and imposing further costs on business. Can the Minister confirm when further collective bargaining will be rolled out, to which sectors, and by how much those businesses can expect to be clobbered?
Oral Answers to Questions
Debate between Gareth Bacon and Lindsay Hoyle(7 months, 3 weeks ago)
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Gareth Bacon (Orpington) (Con)
Domestic violence at its most severe becomes murder. Domestic murder is often the most shocking and brutal. With that in mind, what assessment has the Minister made of the Killed Women campaign?