The Treasury has stopped short of bringing forward its review of the ZEV mandate, despite calls from senior Labour MP Liam Byrne for an earlier assessment of the policy’s impact on the automotive sector.
In a response to Byrne, who is chair of the Business and Trade Committee, chief secretary to the Treasury Lucy Rigby said the review would be completed “within the next 12 months” but gave no indication that ministers would accelerate the process.
The response follows a request from Byrne for the Government to bring forward the review amid growing concern about the impact of the ZEV mandate on the UK automotive industry.
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Ministers see ‘no need for urgency’
Bynre said: “Ministers recognise our automotive industry faces serious industrial challenges, but see no need for urgency in fixing the ZEV mandate that threatens to tip much of the industry into crisis.
“The Government now admits that critical parts of the battery supply chain, including cathode active materials, are developing more slowly than expected, while manufacturers face rising costs, fierce international competition from unfairly subsidised Chinese rivals plus growing uncertainty in key export markets.
“Despite these warnings, ministers have so far declined to bring forward the review of the mandate.
“Surely, it’s now time to reflect on whether aligning with proposed European timetables makes more sense, not least because our automotive supply chains are so interwoven.”
Some MPs, the SMMT and NFDA have all called for a ZEV mandate review to be brought forward.
Rigby acknowledged the concerns raised by Byrne and the committee.
She wrote: “I note the concerns you have raised about the impact of the ZEV mandate on the UK automotive industry, and the Business and Trade Committee’s request that the ZEV Mandate Review is brought forward.”
Read more: 2026: The year retail reality collides with rising ZEV targets
Treasury reiterates support for EV transition
However, rather than agreeing to accelerate the process, Rigby reiterated the Government’s existing commitment to the transition to EVs and highlighted measures already introduced to support manufacturers.
She said: “The Government remains firmly committed to the electric vehicle transition, which is key to meeting our net zero goals and will drive growth and productivity across the UK.”
The Treasury also pointed to changes made to the mandate following consultation last year, which provided manufacturers with additional compliance flexibilities, and highlighted more than £7.5 billion of Government support for the transition through to 2035.
Little clarity on ZEV review
While the Government confirmed a review would take place, the response provided little clarity on when the process will begin or when any recommendations could be implemented.
Rigby wrote: “A review of the ZEV Mandate will be completed within the next 12 months, and will be closely engaging stakeholders, including those from the UK automotive sector, as part of that process.”
The lack of a more specific timetable is likely to disappoint parts of the automotive industry, which have argued that the mandate is placing increasing pressure on manufacturers and retailers as EV sales targets continue to rise.
Forrester backs Business and Trade Committee intervention
Responding to Byrne’s intervention, Robert Forrester, chief executive of Vertu Motors, praised the Labour MP’s stance on LinkedIn and called for urgent changes to the policy.
He said: “This is a very thoughtful and frankly spot on intervention from a highly influential Labour MP.
“The message is getting through that this idealistic, delusional policy must change quickly.
“Government are causing great harm to a sector which could create jobs, apprenticeships and pay taxes. The Government appears disinterested in such matters. Mindblowing.”