The Prime Minister will announce on Monday that he is relaxing the ban on new petrol cars after 2030 to allow hybrids to remain on sale for another five years, in an attempt to boost the automotive industry.
Starmer is hoping to strike a deal with the US to exempt Britain from tariffs, rather than hitting back with levies on American goods – although ministers have acknowledged that the UK will suffer from the global economic turmoil in any case.
A Downing Street source told The i Paper that the Prime Minister’s priority was to “build British”, including announcing parts of the upcoming industrial strategy this week to give firms more certainty about the support they will get from the state.
Darren Jones, Chief Secretary to the Treasury, warned that it was impossible to turn back the clock – telling the BBC’s Sunday with Laura Kuenssberg: “Globalisation, as we’ve known it for the last number of decades, has come to an end.”
But Rachel Reeves is hoping to avoid that decision by working closely with the Office for Budget Responsibility to convince the watchdog that the economic measures she has already introduced will boost growth and strengthen the public finances.
Pricey supercars made by the likes of McLaren and Aston Martin will never be banned, the Government will confirm, in a boost for the specialist industry which is particularly successful in Britain.
However, hybrids such as the Toyota Prius have been exempted in a move that will help the car industry but could anger environmentalists. Vans are also exempt until 2035 in an apparent attempt to help small businesses and sole traders.
Starmer will say: “Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our plan for change. I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside.
Andrew Griffith, the Conservatives’ shadow Business Secretary, said: “Although the Government have performed a U-turn, they are firing on half cylinders when nothing less than full throttle to support our car makers is required. After nearly a year, Labour’s industrial strategy remains stuck on the grid and the Business Secretary and Chancellor are busy undermining competitiveness in the form of higher taxes and new employment red tape.”
Efficiency drive
Some agencies are expected to be closed down as soon as this week as part of a push to give elected politicians more control over how their policies are delivered, and make the state more cost-effective.
Labour insiders have warned that the Prime Minister is in a politically perilous situation amid the global turmoil. A senior Labour source said: “Keir is in a tricky position. He has to toe a very difficult political line because [Trump] can be fickle and reactive.”
An MP added that the UK could double down on its position as “a services superpower”, saying: “We may have a massive competitive advantage, financial services, professional services, universities – that is non-trivial. Are tariffs a net positive? Of course not. What are the exact effects going to be? We don’t know yet.”
Read More Details
Finally We wish PressBee provided you with enough information of ( Starmer urges ‘build British’ and eases car climate target in response to tariffs )
Also on site :