The key automotive policies new PM Andy Burnham must decide on

Andy Burnham has stepped into the fray arsenic the UK's caller premier curate - and 1 of his archetypal moves successful authorities volition person ramifications for UK motorists.

He has ordered the removal of VAT connected home energy bills. This was antecedently charged astatine 5% but reducing it to zero volition prevention the mean location astir £45 per year, according to the government. Although the imaginable savings are small, the determination has been welcomed successful immoderate quarters arsenic a awesome of Burnham's committedness to reducing the outgo of surviving - and motoring with it.

David Martell, CEO of location wallbox supplier Andersen, said the redeeming for high-mileage EV drivers could beryllium astir £40. "That whitethorn not dependable transformational connected its own," said Martell, "but it's the absorption of question that matters."

Gurjeet Grewal, main of Octopus Electric Vehicles, said the alteration means "the fiscal lawsuit for going electrical has ne'er been stronger".

Speaking connected BBC Radio 4's Today programme, transport caput Heidi Alexander said the determination to chopped VAT arsenic good arsenic present a nationalist headdress connected autobus fares were a "signal of intent for the Burnham government".

Although the VAT alteration was broadly welcomed by the centrifugal industry, immoderate called for greater enactment for those incapable to complaint their EVs astatine home.

Drivers reliant connected nationalist chargers volition proceed to wage VAT astatine 20%. Specialised 'EV tariffs' for home charging were already importantly cheaper than nationalist points, but the spread has present widened further. And, according to manufacture radical ChargeUK, nationalist charging prices person risen by 38% since 2020.

Victoria Edmonds, CEO of run radical EVA England, said the modulation to EVs "cannot beryllium just portion radical wage substantially much simply due to the fact that they cannot complaint astatine home".

Edmonds highlighted "significant taxes, levies and energy costs faced by complaint constituent operators" arsenic cardinal barriers to cutting nationalist charging costs.

Professor David Bailey of the Birmingham Business School has called VAT connected nationalist charging a "tax connected circumstance". He added that it is clip to "end the EV charging taxation disagreement erstwhile and for all".

Cutting VAT connected nationalist charging has already proven contentious. In March, a taxation tribunal ruled that steadfast Charge My Street (CMS) should person been levied astatine 5%, alternatively than 20%, arsenic it fell nether the home proviso threshold. HMRC has appealed the decision.

The VAT contented amounts to a instrumentality successful an artillery barrage of automotive questions that the Burnham medication indispensable answer. He has yet to straight remark connected the authorities of motoring successful the UK, but helium and his ministers person hinted astatine continuity of Starmer-era argumentation portion making tweaks to amended the wide prime of beingness successful the nation. Here are the cardinal sticking points to ticker for.

Policy watch: is Burnham pro-car?

ZEV mandate

The zero-emission conveyance (ZEV) mandate remains the astir pressing contented for car firms successful the UK. It requires a accelerated ramp-up successful EV income by manufacturers to debar facing large fines. It was reported past period that the Sir Keir Starmer-led authorities was acceptable to trim the EV income people for 2030 from 80% to conscionable 50%, but it remains to beryllium seen whether Burnham's medication volition travel done connected that change.

Lucy Powell, lawman person of the Labour Party, told the BBC that Burnham would instrumentality to the manifesto nether which Starmer was elected - truthful changes specified arsenic the reported tweaks to the ZEV mandate are expected to stay successful the offing.

Manufacturing

High vigor and labour costs, a downturn successful the size of the home marketplace and the ZEV mandate person each threatened the UK's car factories. A full of 764,715 vehicles were built successful the UK past year, making it the slowest twelvemonth since 1952.

The Starmer authorities acceptable a extremity of boosting output to 1.3 cardinal by 2035, but this volition necessitate targeted action.

Speaking successful Parliament past year, Jonathan Reynolds - who has been reappointed to his anterior station of concern caput - said: "We person to beryllium superior astir making definite that the UK is the spot to beryllium a shaper of vehicles."

In his archetypal code arsenic premier minister, Burnham highlighted "reindustrialising Britain" arsenic 1 of his priorities.

Given cars are the UK's astir invaluable goods export - totalling £47.7 cardinal successful the twelvemonth ended April 2026 - this volition person important ramifications for manufacturers specified arsenic JLR, Toyota and Nissan.

EV roadworthy tax

The Treasury precocious finished its consultation connected the connection of 'eVED' - a caller taxation connected electrical and plug-in-hybrid vehicles charged astatine 3p and 1.5p per mile driven annually, respectively. It confirmed it would spell up with the plans arsenic it seeks to regenerate mislaid backing from substance duty, arsenic a important proportionality of drivers person present made the power to an EV.

Drivers volition beryllium allowed to estimation their ain mileage wrong the archetypal 3 years of their car's lifetime, alternatively than attending abstracted mileage checks. MOT information volition beryllium utilized thereafter. Extra flexibility has besides been introduced for institution fleets.

The Office for Budget Responsibility antecedently forecast that eVED would rise £1.1 cardinal successful the 2028-29 taxation twelvemonth - but besides said the measurement whitethorn preclude 440,000 EV income betwixt present and March 2031.

The Society of Motor Manufacturers and Traders said the premix of eVED and the ZEV mandate is simply a "bitter look for sustaining - ne'er caput attracting - planetary concern successful the UK".

Safer roads

There are present much than 1 cardinal potholes crossed the UK. The Starmer authorities committed £7.3 cardinal for roads implicit the adjacent 4 years and pushed councils to see longer-term preventative measures, alternatively than patchwork repairs. But the rot lies deeper, according to experts, and much concern is needed for a full overhaul of the roadworthy network.

Meanwhile, MPs are considering pursuing Wales successful the adoption of a default 20mph velocity bounds crossed England, highlighting the information benefits and simplification successful superior collisions.