Government in £65 million electric vehicle pledge

Firms producing zero-emission vehicles are set to benefit from £65 million Government funding in a move ministers say will support thousands of jobs.

The backing – to be matched by investment from the automotive industry – includes £50 million for carmakers and research partners to help produce electric vehicles at greater scale.

The overall package of £130 million is part of the Government’s £4 billion Drive35 programme, intended to speed up the electrification of the car industry.

Officials at the Department for Business, Innovation, Science and Trade say the funding would support 1800 jobs directly, as well as thousands more in the supply chain.

The pledge comes after figures showed the UK’s new car market grew by 11.7 per cent in July compared with the same month last year, with the increase driven by a strong uptake of electrified vehicles.

Industry minister Blair McDougall said: “Britain invented the modern motor industry, and we’re determined to ensure the next generation of vehicles are designed and built here too.

“This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.”

Recipients include a consortium led by Bentley and another led by Sunderland-based Nissan focused on self-driving cars.

The Government says it intends to phase out the sale of new petrol and diesel cars by 2030 as part of efforts to cut emissions and tackle climate change.

Reports have suggested ministers are considering watering down the target in order to ease the cost of living, but a Government spokesperson insisted they were “committed to the 2030 phase-out date”.

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