The North East Automotive Alliance (NEAA) welcomes the Government’s continued commitment to industrial growth and UK manufacturing competitiveness through measures such as the Industrial Strategy, Drive35, and extended grants for electric vehicles (EVs) and charging infrastructure. These initiatives are essential to advancing the UK’s transition to zero-emission vehicles and maintaining global competitiveness.
However, the NEAA shares industry concerns over certain fiscal measures announced in the Autumn Budget, which risk undermining progress at a critical stage in the sector’s electrification journey. The introduction of a pay-per-mile tax on electric vehicles from 2028, alongside existing road taxes, sends a mixed message to consumers and could slow EV adoption at a time when manufacturers face stringent Zero Emission Vehicle (ZEV) mandate targets. While the Government has pledged £1.3 billion for the Electric Car Grant, £200 million for charging infrastructure, and an increase in the Luxury Car Tax threshold for EVs from £40,000 to £50,000 from April 2026, these incentives may not fully offset the negative impact on consumer confidence.
There are positive elements within the Budget. The removal of premium car bands from the Mobility Scheme could encourage greater adoption of British-built vehicles, such as those produced by Nissan in Sunderland. Additionally, the delay to changes in Employee Car Ownership Schemes (ECOS) avoids penalising automotive workers who purchase the very vehicles they produce. However, the planned scrapping of ECOS further down the line poses a significant risk – potentially reducing new car registrations, putting thousands of manufacturing jobs in jeopardy, and reducing the flow of new vehicles to the second-hand market.
The NEAA urges the Government to work closely with industry to ensure economic measures align with the UK’s decarbonisation goals and competitiveness objectives. Rather than policies that risk suppressing demand, we need initiatives that stimulate consumer confidence, accelerate infrastructure rollout, and safeguard jobs across the supply chain. As the UK strives to remain a global automotive powerhouse, collaboration between the Government and industry is essential. The NEAA will continue to advocate for policies that drive innovation, investment, competitiveness, and sustainable growth for the North East and the wider UK automotive sector.
Paul Butler, CEO, NEAA
