With the US accounting for UK automotive exports worth £7.6bn, Starmer will also act domestically to protect the industry
Keir Starmer’s upcoming industrial strategy will prioritise carmaking as the Prime Minister scrambles to contain the fallout from Donald Trump’s tariffs.
The move comes after the President of the United States slapped a 10 per cent baseline tariff on UK goods rising to 25 per cent for cars.
While the Government continues to try and negotiate down the car tariffs in talks on an economic deal with the White House, with the US accounting for around 17 per cent of all UK automotive exports, worth £7.6bn, Starmer will also act domestically to protect the industry.
A senior trade sector source told The i Paper the car industry was likely to ask for tax breaks, including to incentivise people to take up electric vehicles, as well as targeted subsidies to support manufacturing.
The sector is also expected to ask for further easing of existing targets and fines, after Starmer last week watered down the mandate for zero-emission vehicles (ZEVs), which will ban the sale of new cars powered by petrol and diesel from 2030, to boost the industry.
While the car industry was not mentioned specifically by the Department for Business and Trade in its preview of the industrial strategy last year, it is set to be included as part of the “advanced manufacturing” sector which is seen as a crucial driver of future economic growth.
The shift is a sign of the Government’s determination to be seen to be protecting the industry in the face of the tariffs threat.
Rachel Reeves on Sunday promised to “bring forward action from our industrial strategy” to support the economy and remove barriers to growth, after The i Paper reported that announcements pencilled in for June’s Spending Review were being sped up with the Chancellor’s economic plans under heavy pressure from the global trade war triggered by Trump.
The head of the Fire Brigades Union warned Starmer that watering down green targets in response to Trump’s tariffs increases the risk of Los Angeles-style wildfires in the UK.
Steve Wright told The i Paper there should be “no rollback” on environmental targets, warning firefighters are “on the front line” of the climate crisis which is seeing the UK becoming more exposed to extreme events like wildfires.
He spoke as wildfire warnings were issued for Scotland and Northern Ireland over the weekend when the country recorded its hottest temperature of the year on Saturday, which followed the driest March in more than 60 years in England and Wales, which increased the risk of wildfires across large areas.
Wright warned that this risk is “UK-wide” and not just confined to remote areas, pointing out that during summer 2022 when temperatures reached 40°C, the London Fire Brigade dealt with a wildfire that “took out houses” in the centre of the city, and declared it their busiest period “since the Blitz”.
He criticised the Prime Minister by responding to Trump’s 25 per cent tariffs on UK car exports to America by watering down the mandate for ZEVs, which will ban the sale of new cars powered by petrol and diesel from 2030, in a bid to boost the automotive industry.
Wright said: “We think there should be no rollback on those pledges, because with the risk of wildfires, there’s a massive strain on fire and rescue services.
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“The risk of flooding, there’s a massive strain on fire services, it puts the public and firefighters at risk themselves.
“And we only have to look back to 2022, that hot summer that we had, and the impact of those fires.”
Responding to the FBU, a No 10 source said the Government have “kept the 2030 target” on petrol and diesel sales.
“This is just about introducing flexibility to make it work for business, we stand by our wider net zero mission.”
