This post was originally published on Autocar
Transport secretary Louise Haigh recently met car makers to discuss EV uptake in the UK
Haigh’s departure comes amid mounting concern about the UK’s electric car transition
Transport secretary Louise Haigh has resigned from her post after it emerged she pleaded guilty to a criminal offence for making a false report to police in 2013. Her sudden resignation comes just days after she was involved in meetings with leading car industry figures to discuss concerns around the UK’s zero-emission vehicle (ZEV) mandate.
Haigh yesterday (28 November) admitted pleading guilty to making a false report to police around 10 years ago, after reporting that her mobile phone had been stolen in a mugging, when in fact it had not been.
She received a discharge following the plea, meaning she was guilty of making a false report but it was deemed worthy of no further punishment.
The case was heard six months before Haigh was elected as the MP for Sheffield Heeley in 2015, and the BBC cites sources in Whitehall saying she declared the discharge upon her appointment to the shadow cabinet.
Nonetheless, Haigh says in her letter that “whatever the facts of the matter”, the issue would “inevitably be a distraction”, and so she has left her post.
In her resignation letter to prime minister Sir Keir Starmer, Haigh said she was “totally committed to [the Labour Party’s] political project” but that it would be “best served by my supporting you from outside government”.
Haigh has been transport secretary for only a matter of months, but her shock departure comes amid mounting uncertainty surrounding the viability of the UK’s ZEV mandate.
Under the terms of the mandate – introduced by the previous Conservative government – car manufacturers must achieve a 22% electric vehicle mix of new car sales in 2024, rising in increments over the next six years to 80% in 2030.
But with organic demand for electric vehicles falling well below the stipulated levels, car firms are being forced to restrict combustion car sales, sell electric cars at a profit-busting discount and re-evaluate their UK business operations.
Nissan last week warned that “the mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment”, calling for “urgent action from the government” to address the risks.
Ford, meanwhile, has called for more flexibility to be built into the terms of the mandate in recognition of fluctuating EV demand, and the Society of Motor Manufacturers and Traders has repeatedly called for the mandate to be supported by government-funded electric vehicle purchase incentives.
Most notably, Stellantis cited the ZEV mandate as a factor in its decision earlier this week to close its van factory in Luton, Bedfordshire, after CEO Carlos Tavares had branded the policy a “terrible thing for the UK” and warned that it could “kill” the domestic car industry.
Haigh’s departure from the transport secretary post comes just days after she and business secretary Jonathan Reynolds met with a number of car manufacturers – including BMW, Ford, Nissan, Stellantis, Tesla, Toyota and Volkswagen – to discuss ways of managing the electric vehicle transition in the UK.
Following the talks, the government said it stood by the planned 2030 phase-out date for new pure-combustion cars, and did not suggest the ZEV mandate framework would be altered.
Haigh doubled down on the government’s commitment to 2030, but acknowledged manufacturers’ concerns. She said: “There has been a downturn in demand on a global level, so we are absolutely in listening mode.
“We want to discuss how the current situation is affecting them, but we are not diluting our ambition. I am meeting with a number of automotive manufacturers later in the week in order to discuss the challenges that they face on a global scale.”
A week later, in an address to the UK automotive industry, Reynolds said he was “concerned” about how the “inherited” ZEV mandate policy was “working at the moment”.
He said that the government would now consult with car makers to determine “a better way forward”, but did not allude to whether this would mean reducing EV sales mix quotas or allowing for hybrids to count towards the targets, for example.
“We get the seriousness of the situation and we get the urgency,” he said, adding that a decision would be made by the end of the year. “We know that you need certainty and that’s why we will fast-track that consultation, giving you clarity on the direction of travel, and assuring you have the answers you need in the coming weeks before you make decisions in January.”
Haigh’s departure is unlikely to have a dramatic impact on developments to the ZEV scheme, but her successor has only weeks to sign off any changes to the ZEV mandate – in collaboration with the business secretary – before the new year.