Labour promises £6bn investment blitz to drive electric vehicle revolution

Labour has today continued its blitz of green policy announcements, unveiling plans to invest up to £6bn in the UK's fledgling electric vehicle (EV) supply chain.

Shadow Business, Energy and Industrial Strategy Rebecca Long-Bailey said the plans would both accelerate the transition to zero emission vehicles and safeguard 186,000 jobs and create a further 32,000 roles across a sector "under siege" that has been hit by Brexit uncertainty, slowing sales, and several factory closure announcements.

"The automotive sector is one of the UK's industrial success stories,"Long-Bailey said. "However, the sector is under siege from Brexit uncertainty and the government's lack of ambition on electrification.

"At the same time, we need to accelerate the shift away from fossil-powered cars if we're to tackle the climate emergency. If we want our automotive sector to flourish, we need a government who is not afraid to intervene."

Dubbed the 'Electric Car Revolution', the new policy package centres on plans for a Labour government to directly invest £3bn in support of the development and manufacture of new electric vehicle (EV) models. The direct investment would be further supported by plans to exempt new private sector investment in EV plant and machinery from business rates.

In addition over £2bn would be made available to support the construction of three battery 'gigafactories' to ensure the UK develops the supply chain for a new generation of EVs.

Long-Bailey said Labour's planned new National Investment Bank would support the current automotive supply chain in providing access to finance to develop and deliver the component parts needed for the vehicles of the future.

The Party signalled the new 'gigafactories' would be located in South Wales, Stoke and Swindon - potentially on the site that is due to be vacated by Honda site.

Under the plan, a further £500m would be invested in four metal reprocessing plants to reprocess cobalt and rare earth minerals used in batteries, creating an estimated 3,000 new jobs, while another £500m would be available for R&D programmes.

The plans are designed to complement proposals earlier this week to support the roll out of EVs through a £3.6bn investment in charging networks, the launch of an interest-free loan scheme, a scrappage scheme for older fossil fuel vehicles, new tax breaks to help corporate fleets move to electric models, and the introduction of a publicly owned electric car sharing scheme.

"Labour's Electric Car Revolution support package will accelerate the electrification process and offer a lifeline for a new era of clean manufacturing - part of Labour's Green Industrial Revolution," said Long-Bailey.

The news comes on the same day as Labour also announced plans for the public to take a stake in new offshore wind farms and redirect resulting profits into related green infrastructure and coastal town regeneration projects.

The various green policy moves look set to step up pressure on the government to come forward with bolder decarbonisation plans, following criticism of its current target date to phase out the sale of new internal combustion engines by 2040 and its failure to bring forward policies to move the UK into line with its new emissions targets.

However, while Labour's plans have been broadly welcomed by environmental campaign groups they have also prompted some disquiet amongst green businesses who fear the focus on public ownership could undermine investor confidence and disrupt sectors that are currently mobilising investment in low carbon infrastructure.

Josh Hardie, CBI Deputy Director-General, hailed the proposed increase in support for the EV transition as "exactly what we need", but also sounded a note of caution over Labour's energy infrastructure nationalisation plans.

"Business is completely behind the transition to a net-zero economy by 2050," he said in a statement. "To meet this target we must have ambitious policy. Investing in our electric car industry and new charging infrastructure, while supporting people and businesses with the move to low-emission vehicles, is exactly what we need.

"Business is at the heart of the transition. It has already helped drive forward record breaking levels of renewable energy and is on course to deliver subsidy-free offshore wind power in the 2020s. However, in the push to reach net-zero as fast and as cost-effectively as possible, renationalisation will hugely disrupt the investment needed in the energy sector to decarbonise. The Labour Party needs to work with business to make the transition a success."