CEO Update

Labour’s growth goals need Automotive to drive them

27 September 2024 #CEO Update

The annual party conference season moved to Liverpool this week as the Labour Party hosted its first as the party of power since 2009. We were pleased to meet with new and senior politicians to discuss how the UK automotive industry can support the national growth agenda and the country’s net zero ambitions. Central to that agenda is an industrial strategy, to which Labour has already committed, and which was fleshed out with some detail on the Apprenticeship Levy, energy market reform and Great British Energy, but it is the promised green paper we await which should provide more detail of structure and policy.

From trade and decarbonisation to infrastructure and skills, automotive can be a massive driver of change. But businesses need certainty over policymaking and dialogue so we used our annual Labour conference lunch to set out to senior MPs and Ministers the priorities automotive businesses need. Automotive is committed to working with government, with all parties, and, indeed, other industries to deliver growth, but there is an increasing sense of urgency if our shared ambitions are to be achieved.

The media has an important role to play in helping consumers gain a better understanding of zero emission vehicles and SMMT’s annual Regional Test Day events, taking place in West Yorkshire and Hampshire this week, provided hundreds of journalists with the chance to meet major car brands, find out more about their products, and try out the very latest vehicle models. More than a dozen major brands were present with cars covering every segment – a huge range that reflects just how exciting OEM product portfolios are today. Indeed, there are more than 100 zero emission models available to UK consumers and offering many benefits to their owners, such that nine in 10 that go electric say they wouldn’t look back.

If more people are going to switch, however – and particularly at the world-leading pace which government has mandated – encouraging consumers, especially private consumers, is a must. As SMMT has set out, cutting VAT on new EV purchases, equalising VAT on public charging with that levied on private charging, and mandating the rollout of chargepoint infrastructure ahead of need, will all send the necessary signal to consumers that the time to switch is now.

The automotive industry is going through a period of positive change not just on the road but in the workforce and this progress must be highlighted if it is to have the necessary snowball effect, encouraging yet more people from diverse backgrounds into the sector. SMMT is proud, therefore, to support the new Autocar Drivers of Change Awards which will champion diversity and, in particular, the people who are driving change in their business, be it through their own identity, experience or thought, whatever their role. Candidates can be nominated by colleagues or nominate themselves, with the first awards event scheduled to take place at SMMT in February next year. For more information and to nominate, please visit here.

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