While Labour’s manifesto may have been surprisingly quiet on the topic of electric vehicles (EVs), they had been very vocal about the topic in the lead up to the general election announcement. Below we examine some of the statements made by Labour on the topic and what Labour’s EV policy might look like (and mean) for motor insurers:
General EV policy
- Then Shadow Roads Minister Bill Esterson told EV trade group Recharge UK in February 2024 that Labour will restore the scrapped 2030 date for the end of the sale of new petrol and diesel cars in an effort to rebuild consumer and investor confidence and help encourage people to make the switch to electric.
- It was reported in October 2023 that Labour was drawing up plans for cash incentives to buy EVs. A suggestion at an advanced stage included a universal cash subsidy worth around £1,500 to help people who want to buy an electric car to fund a deposit. The ideas were pushed back by Rachel Reeves’ Shadow Treasury team, though were understood to still be under some level of consideration in the lead up to the general election.
Driving a growing economy
- In a 2023 policy document entitled Driving a Growing Economy, the party set out how “Labour’s mission is to ensure electric cars, powered by cheap home-grown energy, don’t become the preserve of the wealthy. We believe everyone should feel the benefit of the transition to electric vehicles and cheaper running costs, be that the family car or the company van”.
- The document re-affirmed Labour’s plans for a 2030 deadline for the final sale of new petrol and diesel cars and set out how, “With current domestic battery manufacturing significantly behind that of international competitors, building British capacity at pace has to be central to our plans for the sector”, saying that their plans for a National Wealth Fund would heavily invest in production, creating 80,000 new jobs to power 2 million electric vehicles.
- Labour committed to set binding targets on the rollout of new EV charging points, delegating responsibility- tied to existing funding- to regional and local governments to ensure the distribution of charging infrastructure is fair. The party also pledged to release previously earmarked funding for EVs, such as the £950 million Rapid Charging Fund.
- Labour said they would introduce an Electric Vehicle Confident labelling requirement on new electric vehicles that give consumers the details they need to make informed decisions. This would mirror the Monroney stickers use in the United States and require constructors to provide accurate information on the carbon footprint of the vehicle’s production and usage relative to an ICE comparison, the real-life range of the vehicle’s battery in different settings, and the expected life of the battery.
- The party would implement a standardised battery health certification scheme for used vehicles similar to those already in place in other countries such as Norway.
- On chargepoint data access, Labour committed to improving the accessibility of chargepoint data for businesses and consumers, moving away from requiring consumers to have countless apps to access chargepoints.
- In the King’s Speech delivered on 17 July a ‘Skills England Bill’ was announced, with the intention to ensure that the country has the highly trained workforce that England needs. Previously Labour said that Skills England would include helping to upskill workers in the production of EVs.
Conclusion
While Labour's pre-election policies on electric vehicles have been clearly articulated, their actual plan now that they’re in power remains to be seen (outside of the Skills England Bill which was announced in the King’s Speech). Key commitments include restoring the 2030 ban on new petrol and diesel cars and proposing cash incentives for EV purchases. Labour's vision, as outlined in their 2023 policy document "Driving a Growing Economy," aims to democratise access to electric vehicles, build domestic battery manufacturing capacity, and establish binding targets for EV charging infrastructure.
For motor insurers, these commitments suggest a transformative shift in the automotive landscape. The proposed 2030 ban on petrol and diesel vehicles could accelerate the transition to electric cars, potentially reshaping risk profiles and insurance products. Cash incentives for EV purchases may drive higher adoption rates, necessitating adjustments in underwriting practices and claims management.
As we await Labour's detailed transport plan, it is clear that Labour's transport team will need to address this critical issue shortly, given its growing importance in the political and economic landscape.
