Prime Minister Rishi Sunak's decision to delay a ban on petrol and diesel cars has been described as "pragmatic" by Jaguar Land Rover.
The automotive giant, which has major operations on Merseyside and in the West Midlands, said it welcomed the move as it brings the UK in line with a number of other countries. JLR has previously committed to being a 'pure-electric brand' from 2025 as well as being fully carbon net zero by 2039.
In April, the UK's largest car maker announced a £15bn electric vehicle transformation plan that will see its Merseyside plant become an all-electric manufacturing site and more investment in its West Midlands sites. Its Halewood site in Merseyside will become all-electric, while its Engine Manufacturing Centre in Wolverhampton will become the group’s Electric Propulsion Manufacturing Centre.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
READ MORE: JD Sports on track for over £1bn in profits after demand for Nike and Adidas pushes up sales
In a statement following the Prime Minister's speech, a JLR spokesperson said: "[The] announcement by the Government on the revised end date for the sale of petrol and diesel cars in the UK is pragmatic and brings the UK in line with other nations, which we welcome.
"JLR's commitment to be fully carbon net zero by 2039 is on track and we look forward to the building of the much-needed infrastructure which will help clients transition to an exciting electric future."
In an interview with Radio 4's Today programme, Rishi Sunak said "multiple other car manufacturers" have welcomed his net zero speech and dismissed criticism by Ford as being based on "speculation".
However, before the speech, Ford's UK chair Lisa Brankin had said that moving the 2030 deadline 'undermines' previous commitments.
She said: "This is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three.
"We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high."
While Ford no longer makes cars in the UK, it has a diesel engine factory in Dagenham, Essex, and a plant that makes transmissions in Halewood, which will produce electric vehicle components from 2024. Ford also has a significant engineering and development base in Dunton, Essex.
However, the Prime Minister told Nick Robinson: "Well, they made those comments before I'd actually stood up and made a speech based on speculation and since then what you've had are multiple other car manufacturers, including Toyota last night, welcome what I said because what it does is provide certainty that we’re going to get to net zero in a sensible way, the worst thing for businesses, as you can see in other countries around the world, if you go too far too fast and crucially you don't bring the public with you, and then being forced to change down the track, that’s no good for business.
"So what we've put in place is a road map that will have broad consent and that’s why business can plan with certainty."
Ahead of the speech Stellantis, which oversees a broad portfolio of brands including Vauxhall, Peugeot and Citroen, said it remained 'committed to achieving 100 per cent zero-emission new car and van sales in the UK and Europe by 2030'. It added that it would move to electric sales 'ahead of current legislation', with Fiat becoming an EV-only firm by 2027 and Vauxhall by 2028.
The group has two van production facilities in Luton and Ellesmere Port, the latter of which recently moved to producing fully electric models.
Stellantis added: "Clarity is required from Governments on important legislation, especially environmental issues that impact society as a whole."
After the speech, the company said: "Stellantis is committed to achieve 100% zero emission new car and van sales in the UK and Europe by 2030. Our range will progressively move towards 100% electric, ahead of current legislation. For example, Fiat, Alfa Romeo and DS Automobiles becoming fully electric by 2027 and Vauxhall by 2028. Furthermore, as outlined in our Dare Forward 2030 strategic plan, we will be carbon net zero by 2038."
However, a Liverpool business leader who heads up an environmentally-focused company, said the Prime Minister's speech "was disheartening to witness U-turns in policies that were initially aimed at promoting sustainable living and reducing our carbon footprint".
Rebecca Armstrong, managing director of Making Energy Greener, said: "These changes hit particularly close to home, affecting both my industry and the communities we serve.
"The extension of MEES to 2035 only serves to relieve slum landlords from the urgent need to retrofit their properties, thereby perpetuating the issues of unaffordability and unhealthiness for tenants. If the government is serious about tackling fuel poverty and reducing carbon emissions, then delaying mandatory energy efficiency improvements is a step in the wrong direction.
"Furthermore, the reversal in the stance on gas heating systems is perplexing. At a time when the focus should be on implementing renewable energy solutions, the promotion of gas boilers seems counterintuitive. This will undoubtedly appeal to those resistant to change and further the false narrative that our abundant gas reserves eliminate the need for renewable energy.
"What's concerning is the message these U-turns send to the public: that it's okay to maintain our current, unsustainable lifestyles as long as we find alternative ways to power them. Whether it's blue hydrogen or nuclear energy, these are not holistic solutions but rather stop-gap measures that ignore the root cause—our wasteful, all-consuming habits.
"If Britain is to truly contribute to global sustainability, we need policies that are consistent, long-term, and most importantly, focused on making systemic changes. It's time we challenge the status quo, not revert to it.
"The moment for an authentic government approach is now—because the cost of these policy U-turns is not just financial, but environmental, and it's a debt our future generations can't afford."
