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This week’s announcement of plans to close one of Britain’s oldest automotive factories came as a huge blow, most importantly to the workers at Luton and their families. It is a stark reminder of the intense pressure the entire industry is under in the transition to net zero, following recent news of closures and cutbacks at manufacturers and suppliers in the UK and globally. Manufacturers are fully invested in developing the technologies to deliver decarbonisation, but the cost of moving markets that are not ready is immense. The situation is particularly acute in the UK with among the toughest targets and most accelerated timeline in the world, yet without the consumer incentives that would drive the necessary demand.

It is right that government has listened, recognised the industry’s pain and committed to a fast tracked review, and we were pleased that the Rt Hon Jonathan Reynolds MP, Secretary of State for Business and Trade, made it his priority to address the industry directly at our Annual Dinner on Tuesday, where he expressed his profound concern and need for urgent change. It is imperative for decarbonisation and economic growth that the UK has workable regulation, backed with fiscal incentives and affordable, accessible public charging to encourage EV purchases. That’s what sustainable success will look like.

Industry is already investing heavily in the transition, not “just” the billions in product development but also the estimated £4 billion worth of discounts offered customers this year alone. Furthermore, with industry still expected to fall short of the mandated EV market share targets, to this bill will likely be added an additional compliance bill worth £1.8 billion for cars alone. Van manufacturers, meanwhile, would face even bigger costs with its EV market drastically behind the required proportions.

Manufacturing operations are undergoing their own immensely complex transformations. UK factories are continuing to retool for EVs – change that is absolutely necessary but highly disruptive, as SMMTfigures published yesterday show, with car output falling by -15.3% in October, the eighth month of decline in a row.

It underlines the importance of a strong partnership between industry and government as we work to develop an comprehensive Industrial Strategy that assures our competitiveness. The prize is significant, with the potential of £50 billion worth of green growth over the next decade, jobs gained, not lost and a healthy automotive sector fit for the future.