Autumn Budget 2024: comment on outcome for UK car industry's switch to EVs

“Of cars built in the UK, 80% go abroad, the majority to markets that are rapidly shifting to EVs. If our car industry isn’t able to retool itself to meet these changes in demand, the consequences could be severe.

“A recent report by CBI Economics [2] has found that failing to support the UK’s car industry make this switch could see its economic output shrink by 73%, or £34bn, with more than 400,000 jobs being lost. Get it right, and the industry’s contributions to the UK economy could increase by over £16bn, with more than 167,000 new jobs being created.

“In committing this £2bn in support, the Government clearly recognises that the future of our automotive sector hinges on it making a successful transition to building electric vehicles. It builds on its commitment to the previous Government’s Zero Emission Vehicle Mandate, which is giving a clear signal to industry to change, while bringing down prices for drivers. However, given the vast levels of support and investment that other countries are providing their automotive industries, the question has to be, is this £2bn enough?”