Labour leader Keir Starmer has revealed plans to relax rules surrounding hybrid vehicles, as the government reaffirmed its commitment to banning the sale of new petrol and diesel cars by 2030.
This announcement came as the Prime Minister addressed the potential consequences of Donald Trump's tariffs, warning of a "profound" impact on the global economy amidst a worldwide market downturn. In a key speech, the Prime Minister acknowledged that "nobody is pretending tariffs are good news," but vowed to "fight for the best deal" with the US.
He pledged support for businesses and workers in an era of "global instability" as the FTSE 100 suffered significant losses on Monday morning.
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During a visit to Jaguar Land Rover, Starmer expressed his backing for the car industry, which has been hit by 25 per cent tariffs on US exports, saying: "These are challenging times, but we have chosen to come here because we are going to back you to the hilt".
The Prime Minister maintained the 2030 deadline for banning petrol and diesel vehicle sales, despite the Conservative government's previous extension to 2035. However, he announced that hybrid cars, which combine a petrol or diesel engine with an electric battery, such as the Toyota Prius and Nissan e-Power, will be permitted for sale until 2035, providing the industry with more time to adapt.
"That's a new step that we are taking, a new announcement today," he said.
He continued: "Because we're not ideological about how we cut carbon emissions, we're also going to make sure that cleaner, efficient petrol cars sold before 2030 count towards your EV mandate."
He stated that would be positive for UK car manufacturers, such as the one he was visiting. He then added: "British electric cars running off clean British power made by British workers. British cars for British workers. And as you know, by the way, switching to electric can also save you up to £1,100-a-year, so if we get this right, it can help with the cost of living as well."
Small and micro-volume car producers would also be excluded from the zero-emissions requirements, according to the measures. Additionally, the government would facilitate companies that don't adhere to sales standards set by the government to avoid paying fines.
He continued: "This is a moment for cool heads, nobody wins from a trade war, you know that. But it's also a moment for urgency, because we've got to rise together as a nation to the great challenge of our age - and it is the great challenge - which is to renew Britain so we're secure in this era of global instability."
His statements came as the President of the US, ignoring concerns about a potential global trade war, warned other nations not to be "weak" or "stupid" in a defiant post on his Truth Social platform.
During the weekend, he downplayed the worldwide disturbance as well and likened his taxes to "medicine". In an interview aboard Air Force One, he said: "I don't want anything to go down. But sometimes you have to take medicine to fix something."
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