Labour in U-turn over eco rules on electric car sales after backlash from car makers

STRICT Government eco rules on electric car sales are set to be relaxed after a backlash from car makers.

Business Secretary Jonathan Reynolds ­yesterday announced an emergency consultation over the next few weeks to try to help struggling manufacturers.

Net zero rules currently demand 22 per cent of new cars sold this year must be electric, or makers face fines of £15,000 per polluting motor.

That will rise to 28 per cent next year, and go up every year until ­petrol and diesel vehicle sales are banned in 2030.

The Tory government pushed the ban to 2035, but Labour brought it forward, which Downing Street yesterday insisted was non-negotiable.

But a Government source said ministers may allow delays in meeting sale quotas if car makers then commit to selling more electric vehicles later on.

Such steps should ease immediate job cut risks, according to another source.

Ford slashed 800 UK jobs last week, blaming a drop in production of key electric models. Nissan warned targets could do “irreversible” damage to Britain’s car industry.

Figures show the quotas could saddle manufacturers with a £6billion bill this year.

The Society of Motor Manufacturers and Traders said 116,000 fewer electric vehicles than expected will be sold this year, and industry “alarm bells” were ringing.

Last night Mr Reynolds told an SMMT dinner that the industry was facing its greatest challenge in 50 years, adding: “I don’t believe policies that we inherited are working.

“I will be candid, I am profoundly concerned by what’s happening at the moment. We get its seriousness and urgency.

“We are absolutely committed to 2030. But at the same time I have decided to consult on the changes . . . so you can make your decisions in January.”