EV Target Softened
UK Labour plans to cut 2030 electric vehicle sales mandate to 50%.
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Prime Minister Keir Starmer has reportedly overruled Energy Secretary Ed Miliband to slash the UK's electric vehicle sales target from 80% to 50% by 2030, according to The Sunday Times and City AM. The move marks a dramatic U-turn on one of Labour's flagship green policies and hands a major defeat to Miliband, who championed the original goal as central to the UK's net zero agenda.
The policy being changed is the Zero Emission Vehicle (ZEV) mandate — a rule requiring a rising share of new car sales to be fully electric. It became law in January 2024, starting at 22% in its first year. But manufacturers fell short, hitting only 19.6% against that target, triggering heavy industry pressure over fines of up to £15,000 per non-compliant vehicle sold, per Car Dealer Magazine.
Why Industry and Unions Pushed Back Hard
Car manufacturers warned for years that the pace of the mandate was out of step with buyer demand. By May 2026, EV market share had stalled at just 24%, while the 2026 target had climbed to 33%, according to Financial Times. Only 1 in 10 private buyers switched to an electric car by 2025, with high upfront costs and fears about charging infrastructure cited as the main reasons, per SMMT.
Factories faced a real financial squeeze. Manufacturers spent roughly £10 billion between 2024 and 2026 on discounts to push EV sales and avoid fines, according to Autotrader. Business Secretary Peter Kyle called the situation an "existential risk" to the UK's £25 billion automotive sector. Unite union chief Sharon Graham hailed the rollback as a "huge victory," saying failure to act "would have been an act of self-harm" to UK manufacturing.
Ed Miliband Suffers a Crushing Cabinet Defeat
Miliband had built his energy brief around the EV mandate. The 80% target was the centrepiece of Labour's push for net zero emissions by 2050. Starmer's decision to cut that target to 50% is a direct overrule of his own Energy Secretary, representing what Cambridge News called a significant "political blow" to Miliband's agenda.
The episode has exposed a clear split inside Cabinet. On one side sit what The Sunday Times describes as "net zero purists" led by Miliband. On the other are "industrial pragmatists" led by Starmer and Kyle, who prioritised protecting 183,000 direct manufacturing jobs over the original climate roadmap. Starmer reportedly used the phrase "deindustrialisation" to justify the move.
Climate Groups Warn of a 17 Million Tonne CO2 Cost
Environmental campaigners are alarmed. The Guardian reported that existing loopholes in the mandate will already add an estimated 17 million tonnes of CO2 to the atmosphere by 2030 — before this latest cut is even factored in. Green groups also warned that plug-in hybrids, which can now make up 50% of sales until 2030, may emit up to 350% more CO2 than official figures suggest.
The change also threatens the business case for the UK's charging network, which has attracted £15.5 billion in planned investment. If fewer drivers switch to EVs, charging operators may pull back. On top of that, drivers who stick with petrol or hybrid cars longer will face higher long-term fuel costs compared to an earlier shift to fully electric, according to The Guardian.
UK Joins a Global Retreat From Strict EV Targets
Britain is not alone. Both the US Environmental Protection Agency and the Canadian government softened their own EV adoption targets in early 2026, according to S&P Global. The UK move brings Britain into closer alignment with the European Union, which has also pulled back from its most aggressive near-term electric vehicle goals. Industry analysts at Gartner described the shift as a necessary "breathing space" for legacy carmakers struggling with Chinese competition.
For drivers, the practical impact is a longer window to buy hybrid vehicles. The revised policy allows hybrids to make up half of new car sales right up to 2030. Starmer first signalled flexibility in April 2025, when he allowed manufacturers to borrow future credits and extended hybrid sales to 2035. Today's reported cut to 50% goes much further — and may not be the last adjustment before the decade is out.
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