PRIME Minister Keir Starmer is set to give a keynote speech on Monday afternoon in the wake of US president Donald Trump introducing sweeping tariffs.
Trump has hit British imports with 10% tariffs, with motor vehicles facing a higher 25% rate.
Starmer is set to pledge to help “ensure home-grown firms can export British cars”, saying that the new global context has forced the Government to go “further and faster” on the economy.
Jaguar Land Rover – which is owned by the Indian firm Tata Motors – said over the weekend that they would “pause” shipments to the US and look to “address the new trading terms”.
Starmer has said that “global trade is being transformed” and businesses need “a government that steps up”.
“That means action, not words,” he will say. “So today I am announcing bold changes to the way we support our car industry.
“This will help ensure home-grown firms can export British cars built by British workers around the world, and the industry can look forward with confidence, as well as back with pride.”
What will Keir Starmer announce in his speech?
In Monday’s announcement, Starmer will officially reinstate the 2030 ban on the sale of new petrol and diesel cars.
However, regulations around manufacturing targets on electric cars and vans will be altered, to help firms in the transition, and new hybrids will be on the market for another five years.
Hybrids and plug-in hybrid cars will also be allowed to be sold until 2035.
Petrol and diesel vans will be able to be sold until 2035, as well as all hybrid models.
The Government is also going to make it easier for manufacturers who do not comply with Government-mandated sales targets to avoid fines, and the levies will also be reduced.
A series of interventions from the Government are expected this week, and it is thought that elements of the industrial strategy could be brought forward, having been expected this summer, in response to the announcements from the US in recent days.
When is Keir Starmer’s speech?
The Prime Minister is visiting the West Midlands and is due to deliver a speech at around 2.30pm.
How can I watch Keir Starmer’s speech?
The Prime Minister’s speech will be broadcast live on news channels including BBC News and Sky News.
A live feed of Sky News on YouTube can be found here.
What is the car industry saying?
Motoring industry body the Society of Motor Manufacturers and Traders (SMMT) has said that “greater action will almost certainly be needed” to safeguard manufacturers, given the tariff changes.
Chief executive Mike Hawes said that “given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness.
“UK-US negotiations must continue at pace, while the long-awaited industrial and trade strategies should prioritise automotive and be delivered at speed.”
Shadow business secretary Andrew Griffith said: “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.”
Meanwhile the Liberal Democrats have said that the moves on their own “won’t be enough to protect the sector from the impact of Trump’s damaging taxes”.
Transport spokesperson Paul Kohler said “ministers should also be exploring better incentives for consumers to buy electric vehicles including VAT cuts for public charging and postponing the planned increase in vehicle tax on electric cars.”
