This week, the automotive industry came together for the 108th SMMT Annual Dinner in London, to celebrate the value the sector delivers for the UK. As the Secretary of State for Business and Trade, The Rt Hon Peter Kyle MP, noted in his keynote address, been a challenging period for industry but there is also plenty to celebrate with a renewed partnership between UK manufacturing and government, not least through the Industrial Strategy published in July.
Taking place the night before the Autumn Budget, the Secretary of State confirmed key announcements under the Strategy. The new British Industrial Competitiveness Scheme, which could bring down electricity bills for more than 7,000 eligible manufacturing businesses will be opening for consultation – absolutely essential, with SMMT having highlighted for some time that such a step is critical for boosting UK competitiveness. Plus, an additional £1.5 billion has been committed to DRIVE35 – bringing the programme’s total investment to £4 billion – which can help support automotive R&D projects covering batteries, electric motors, power electronics, hydrogen fuel cells and more.
While the Budget was of course the government’s main focus, this week it also published its response to the consultation on the 4.25-tonne Zero Emission (ZE) Van Flexibilities with two welcome changes, for which SMMT has long campaigned. First, government will bring forward legislation to reclassify 3.5 tonne to 4.25 tonne ZEV vans as Class 7 for MOT purposes, instead of the current position where they are treated as HGVs. It will also remove 3.5 tonne to 4.25 tonne ZEV vans from scope of the assimilated drivers’ hours rules and tachograph requirements.
We will need to wait a few more months for the legislation to be laid before Parliament, but it is hoped these changes will help make the 4.25 tonne ZEV vans more desirable to operators, as they will finally be able to manage them in the same way as they would a 3.5 tonne ICE van. That’s crucial, as uptake must rise rapidly to meet increasingly tough government targets. With each manufacturer required to hit a 24% target for ZEV registrations next year, every level must be pulled to make it easier for operators to make the switch sooner.
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