Labour unveils plans to water down Net Zero targets on electric car sales as ministers admit they risk pushing up costs for drivers and won't be hit

Published: 16:27, 14 August 2026 | Updated: 16:29, 14 August 2026 LABOUR announced plans to water down its Net Zero targets on electric cars today as it admitted they risk pushing up costs for drivers and won’t be hit. Ministers said they were planning to loosen rules on electric car sales because they weren’t ‘fit for purpose’ amid ‘slower than anticipated’ uptake. It means half of all new cars sold at the end of the decade may still have fossil fuel engines. Under the present law, by 2030 only 20 per cent of new cars sold will be able to use petrol or diesel. The target, known as the zero-emission vehicle (ZEV) mandate, increases annually until 2030 and is 33 per cent this year. But only one in four new cars currently sold are EVs as a lack of public chargers, higher price tags and anxieties around running out of charge during trips have dampened demand. Most of these sales are also driven by businesses decarbonising their fleets rather than private motorists. Car-makers face huge fines of up to £15,000 for every new vehicle sold above their quota of fossil fuel cars, which ultimately get passed on to consumers. Only one in four new cars currently sold are EVs, against a target of 33 per cent this year and 38 per cent next year  The Tories' shadow transport secretary, Richard Holden, said Labour’s 'Net Zero obsession is piling costs on hardworking families and taxpayers'  Announcing today's review, Transport Secretary Heidi Alexander said it's 'right we keep targets under review to ensure they're practical' The Tories' shadow transport secretary, Richard Holden, said: 'Finally, after many months of unnecessary delay, it is positive to see the Government review the ZEV Mandate. 'Labour’s Net Zero obsession is piling costs on hardworking families and taxpayers yet they appear wedded to ending the sale of hybrid, petrol and diesel vehicles. 'Rather than just launch a consultation, Prime Minister Andy Burnham should take concrete action now to ease the pressure.' Announcing the review, Transport Secretary Heidi Alexander said: ‘It’s right we keep targets under review to ensure they're practical and back British industry. ‘The end goal hasn't changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.’ Business Secretary Jonathan Reynolds said the move was about ‘listening to industry’, which has been warning for months that the current targets were unrealistic. Today's consultation documents stated: ‘Slower than anticipated ZEV demand sits alongside wider factors affecting the UK automotive sector, including comparatively high UK energy and labour costs, tariffs and trade barriers…Ensuring the ZEV Mandate remains fit for purpose therefore requires careful consideration.’ The review will consider whether to lower the 2030 mandate to 70, 60 or even 50 per cent from the current 80 per cent. It will also look at bringing in more flexibility for manufacturers who fail to meet the thresholds. A separate 2030 ban on sales of all new pure combustion engine cars will remain in place, with hybrids – which sometimes use petrol and diesel – being allowed until 2035. But the move to water down the ZEV mandate will spark speculation that this could also be delayed. Mike Hawes, chief executive of industry body The Society of Motor Manufacturers and Traders (SMMT), said: ‘We welcome the Government's consultation on the ZEV Mandate and how it should change to better support the UK’s transition. Industry remains fully committed to a zero-emission future…the regulation was conceived, however, under very different conditions – cheaper energy, rapidly declining production costs and more optimistic global demand expectations.’ So far this year, pure electric cars have accounted for 25.3 per cent of registrations, well short of the 33 per cent ZEV requirement for this year and 38 per cent next year. Petrol cars continue to be most popular, accounting for 42.8 per cent of registrations.