Greg Smith is the Conservative MP for Mid Buckinghamshire.
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I draw attention to my entry in the register of interests. I expected the Secretary of State to hide from talk of CVs, but it seems that also applies to EVs. This weekend we saw the disastrous consequences of Labour’s rigid approach to net zero: BMW hitting the brakes on a £600 million investment in Plant Oxford. That deal, from 2023, would have secured 4,000 high-quality jobs and was a strong vote of confidence in the UK. Like other deals, it was possible only because the previous Government were willing to be pragmatic. The Conservatives made the sensible decision to delay the ban on internal combustion engine cars, bringing the UK into line with major global economies such as France, Germany, Sweden and Canada, but Labour said it knew better, restoring the 2030 phase-out date in its manifesto.
When the negative impacts of that approach became clear, the Government launched a fast-track consultation on the zero emission vehicle mandate, pitifully attempting to buy themselves time. Surely, no consultation is necessary. The effects of their puritanical ZEV obsession is already clear: Jaguar Land Rover says that the ZEV mandate is causing disruption to the market; Vauxhall has confirmed that it will shut down its Luton factory, citing the ZEV mandate as making the plant less economically viable; and now the future of Plant Oxford—the home of the Mini since 1959—is uncertain.
Labour’s reckless policies have shattered industry confidence, with consumer demand for EVs dropping off a cliff and numbers only just about sustained by subsidised fleet sales. Will the Minister do the right thing: stop hiding behind consultations and acknowledge that the Government’s ideological approach to net zero will lead only to economic disaster for our automotive sector and consumers alike?
This is yet another failure in the Government’s main aim of getting Britain growing again. Zero-emission vehicles are too expensive and, it appears, too hard to manufacture in the UK. That forces us into an unfortunate reality in which we are reliant on Elon Musk for our supply of EVs, and are funnelling money into his already very deep pockets, rather than promoting a productive domestic market with good jobs. We need to show ambition and make it easier for ordinary families to buy EVs. What measures will the Government take to support and encourage consumer demand for electric vehicles?
In answer to the shadow Secretary of State, the hon. Member for Mid Buckinghamshire (Greg Smith), the Minister stated that the strategy is resulting in people wanting to invest in the United Kingdom. The sad fact is that as a result of the mad net zero policies that this Government are following, we are losing investment every week; this is yet another example. Does the Minister not follow the logic? If we punish people for not wanting the cars that we produce, the companies will cut back production and jobs, consumers will not get what they want, and economic growth will be affected. When will this Government come to the conclusion that this policy of net zero and punishing people is wrong?
I do not know if the right hon. Gentleman saw that the CBI brought out figures over the weekend showing that the net zero economy grew by 10% last year, which is significantly more than the economy as a whole. We are absolutely right to transition to electric vehicles, so that we can stick to our commitments on climate change. We are being pragmatic in how we do that. We are not following the same policy as the previous Government, because we are talking to industry and consulting. We will publish the results of the consultation on how the flexibilities within the transition are working, and whether we need to change them in any way.
The British car industry was thriving until the Conservative party introduced net stupid zero, and now we have another car plant at risk; another business struggling and losing hundreds of millions of pounds; and hundreds more British jobs at risk. Does the Minister agree that the automotive industry in the UK will continue to decline until we scrap net zero?
Here we go with the same old lines. The hon. Gentleman tells us that net zero is a massive con, yet he owns a company that is investing in electric car charging ports. I rest my case.
Full debate: Plant Oxford Site
Last year, just one in 10 consumers buying a new car chose battery electric, and in 2024, the private market for battery electric was 20% lower than Government intervention had tried to manipulate it to be. Without fleet sales—which we know are warped by huge tax incentives, promoting them over practical vehicle choices—electric car demand just is not there. When will the Minister understand that people are crying out for a different way to defossilise and decarbonise their private vehicles? Battery electric just is not popular, so when will the Government stop trying to tell people what they should want? This is just a “Government knows best” attitude at its very worst, is it not?
Full debate: Oral Answers to Questions
The Society of Motor Manufacturers and Traders’ January report simply does not back up what the Minister has just said. I repeat that only one in 10 consumers—the people we all represent in this House—actively chose a battery electric vehicle. As the Minister knows from her time on the Transport Select Committee when we looked at the future of fuel, there are other technologies out there. The Government like to say that they are technology-neutral, but the ZEV mandate’s myopic focus on the tailpipe rather than whole system analysis effectively denies our innovators the room to defossilise and decarbonise in a manner that consumers want. Surely the Minister sees that, so instead of trying to force people to buy battery electric, will the Government just get the bureaucracy out of the way and let our innovators innovate?
Full debate: Oral Answers to Questions
The Government seem content with ploughing on. Last week’s revelation in The Daily Telegraph of intentions to convert a tenth of our farmland to use for net zero gives a blank cheque to those intent on destroying rather than preserving our countryside. The countryside is for farming. It is not a building site for solar panels, power plants, battery storage sites or wind turbines. It is for growing food. It is for the local communities and businesses that rely on it.
My constituents are constantly being told that the projects are needed for a transition to net zero, yet the vast majority will not even be completed. That goes to show how misguided the Government’s so-called energy security policy really is: unable to deliver and throwing my constituents under the bus. It should therefore not be a surprise that the misguided and highly speculative nature of the BESS projects has led to countless rejections by local planning authorities.
Full debate: Energy Development Proposals: Mid Buckinghamshire
When consumer confidence is low, business confidence is low, and nowhere is that more visible than in our automotive sector, with UK car production slumping to its lowest level since 1954. Autocar magazine warned today that the zero emission vehicle mandate
Full debate: Oral Answers to Questions
To answer the hon. Gentleman’s serious point, I do not see anything in the Bill that challenges the zero emission vehicle mandate. The ZEV mandate is obsessed with testing at tailpipe rather than whole-system analysis, which gets in the way of developing synthetic fuels and greenlighting the great innovators in this country and worldwide to get on with developing that technology. If we put a synthetic fuel through an internal combustion engine, there is still carbon at tailpipe, but it is the same volume of carbon that will be recaptured through atmospheric carbon capture to make the next lot of fuel. It is carbon neutral. It is one volume of carbon in a perpetual circle, yet I see nothing in the Bill that will enable those great innovators to move ahead and get—as some of them claim they can—cost parity with the fossil fuel equivalent within a decade.
I hear the point the hon. Lady makes, but I fundamentally disagree. We already have the direction—it was the last Conservative Government who were the first in the western world to legislate for net zero by 2050 and who passed the Environment Act. The answers to the challenges we face in the development of synthetics do not sit in the Bill before us today. They sit in other legislation, which I admit I voted against in the last Parliament, but it is the ZEV mandate that gets in the way, because it fails to look at whole-system analysis. Who else wants to have a go?
Full debate: Climate and Nature Bill
Estimates suggest that the SAF mandate provisions and the revenue certainty mechanism will still leave a shortfall, with a family of four facing over £300 extra to fly on holiday by 2040. That is a clear concern for consumers, as well as the airline industry. Net zero should not come at an additional cost to consumers or undermine freedoms—in this case, the freedom to fly. The test must surely be how to defossilise, decarbonise and allow people to do the same at the same cost. What steps is the Minister taking in conjunction with the Treasury to close the financial gap between incentives in the mandate and the actual increased cost of switching to SAF for the end consumer?
Full debate: Oral Answers to Questions