The Government has launched its 10-year Industrial Strategy, outlining a long-term plan to grow the UK economy, raise living standards, and support key sectors. For the automotive industry, the newly released Advanced Manufacturing Sector Plan is of particular relevance.
What it means for BVRLA members:
- Electric vehicle support: £1.4bn for ZEV uptake and £400m for charging infrastructure rollout. There is also a focus on reducing the wait for grid connections. (note: the funding was confirmed as part of the Comprehensive Spending Review earlier this month)
- ZEV manufacturing boost: £2bn in capital and R&D funding, with an extra £500m through the DRIVE35 initiative.
- Gigafactories and supply chains: £5.8bn to support green hydrogen, carbon capture, ports and green steel.
- Connected and Automated Mobility (CAM) funding extended: £150m to support commercial and self-driving vehicles via the CAM Pathfinder programme.
- Tax certainty: Full-expensing retained on current terms, with continued capital allowances and Benefit-in-Kind (BiK) tax incentives.
- Regulatory reform: A 25% cut in compliance costs is targeted, alongside improved regulatory clarity.
There will be an annual Investment Strategy update, which will assess the impacts based on six core metrics: business investment, Gross Value Added, productivity growth, trade exports, labour market outcomes such as employment and wages, and the number of new, large, ‘homegrown’ businesses.
A summary for members can be found on the BVRLA website: UK Modern Industrial Strategy 2025 Launch.
Members are encouraged to share their thoughts on the Industrial Strategy with [email protected].
Read the views of BVRLA Chief Executive: Government signals long-term intent for UK Automotive.
A copy of the Strategy: The UK's Modern Industrial Strategy.
Policy papers, sector plans and supporting documents: The UK's Modern Industrial Strategy 2025 | GOV.UK.
