The Treasury has caved to industry demands, sources confirm, agreeing to weaken the mandatory electric vehicle sales targets that were set to take effect next year. The decision, revealed in internal documents seen by this paper, marks a significant retreat from the government's net-zero ambitions amid mounting lobbying from car manufacturers and dealerships.
Under the original mandate, automakers were required to ensure that a rising percentage of their new car sales were zero-emission vehicles, with fines for non-compliance. But the new, softer targets will allow manufacturers to offset shortfalls with credits from past sales or investments in charging infrastructure. The move effectively postpones the transition to electric vehicles, handing a lifeline to petrol and diesel models.
Treasury officials insist the revised mandate is a pragmatic response to market realities. 'We are still committed to net-zero, but we must balance environmental goals with economic viability,' a spokesperson said. However, critics argue that the weakening of the mandate is a direct result of aggressive lobbying by automotive giants who fear falling profits and job losses.
One internal memo, marked 'confidential', warned that the original targets could 'strangle the industry' and lead to 'significant job losses' in manufacturing. Another document, from a meeting between Treasury officials and car industry executives, notes that 'flexibility is essential to avoid a collapse in sales volumes'.
The weakening of the mandate has drawn sharp criticism from environmental groups and some MPs. 'This is a betrayal of the government's climate promises,' said a Labour MP who sits on the Environmental Audit Committee. 'They are putting corporate profits ahead of the future of our planet.'
But industry insiders see it differently. 'The original targets were unrealistic,' said a senior executive at a major car manufacturer. 'We support the transition to electric, but it has to be at a pace that doesn't destroy the industry. This is a victory for common sense.'
The revised mandate is expected to be formally announced next week. It will require just 22% of new car sales to be zero-emission by 2025, down from the original 28%. And the fines for non-compliance will be halved, sources say.
The Treasury is also rumoured to be considering delaying the ban on new petrol and diesel car sales from 2030 to 2035, a move that would be a major blow to climate activists. But officials deny this, insisting that the 2030 deadline remains intact.
The debate over the electric car mandate exposes a deeper conflict within the government: between the need to show climate leadership and the pressure to protect domestic industries. As one former energy minister put it, 'The Treasury is caught between a green electorate and a powerful automotive lobby. In the end, the lobby always wins.'
The news comes as sales of electric vehicles have slowed in Britain, with just 15% of new cars sold last month being electric, down from 16% a year earlier. Industry figures attribute the dip to high prices and insufficient charging infrastructure. The government's own data shows that the number of public charging points has increased, but remains well short of what is needed for a mass transition.
The Treasury's decision is a body blow to climate campaigners, who had seen the electric car mandate as a key policy to cut emissions. But it is a clear demonstration of where power lies in Westminster: with those who have the deepest pockets and the most to lose.
