Andy Burnham has stepped aside from a decision on Britain’s electric car sales targets because of a potential conflict of interest involving his wife, according to senior industry sources.
The prime minister has handed responsibility for changes to the zero-emission vehicle (ZEV) mandate to Louise Haigh, the first secretary of state, the sources said.
Burnham is married to Marie-France van Heel, who recently stepped back from her role as chief marketing officer of Iduna Infrastructure, the parent company of the Manchester-based electric vehicle charging network Be.EV. Van Heel continues to advise the Be.EV board.
Downing Street refused to comment on the recusal this weekend. A spokesman said the government was united in its commitment to phasing out the sale of petrol and diesel cars by 2030.
Ministers divided over 2030 target
The recusal comes as ministers disagree over how far to change the targets. The Treasury and the business department want the 2030 requirement, under which 80 per cent of new cars sold must be electric, cut to 50 per cent, according to Whitehall and industry sources.
Treasury officials are understood to believe a 50 per cent target is needed to attract investment from overseas carmakers to build future models in the UK. Jonathan Reynolds, the business secretary, is said to support the change on the grounds that it is pivotal to sustaining automotive jobs.
Officials at the Department for Transport, which leads on the targets, believe carmakers’ complaints about the quotas are overblown and that support for the green transition is growing among drivers, the sources said. Heidi Alexander, the transport secretary, is thought to favour a 2030 target nearer 60 per cent. The energy department is pressing for the mandate to remain unchanged.
A government source said Alexander’s team was attempting to pitch itself as the “honest broker” between the Treasury and business department on one side and the energy department on the other.
Officials from the transport, business and energy departments are due to meet industry leaders in the coming days to discuss the results of the consultation on adjusting the targets, which closed on Friday. A 50 per cent and a 60 per cent target for 2030 are both among four alternative car trajectories set out in the Department for Transport’s consultation.
Carmakers put cost at £10bn
The mandate came into force in 2024 with a requirement for 22 per cent of new cars sold to be electric, rising each year to 33 per cent in 2026. The 80 per cent target for 2030 coincides with a ban on sales of new petrol and diesel cars, meaning the remaining 20 per cent would need to be hybrids.
Carmakers say the mandate has cost them £10bn over its first two years. Manufacturers typically offer large discounts on electric cars to meet the quotas, because missing them triggers a penalty of £12,000 per car.
UK factories operated by Nissan, Toyota and BMW-owned Mini are not running at full capacity as established western carmakers face a wave of cheaper Chinese imports.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: “Demand is growing, but remains well short of mandated targets, which rise steeply over the next two years. Manufacturers cannot continue to make up that shortfall indefinitely by discounting, as cost factors and global events add to the immense pressure, threatening the sector’s ability to attract investment and retain the industrial capability the country needs.”
The recusal comes as Burnham seeks to “reindustrialise” the UK economy. The government’s industrial strategy for electric vehicles and batteries targets UK output of more than 1.3 million cars and commercial vehicles a year by 2035.
A government spokesperson said: “The government is united in its commitment to the ZEV mandate, and no decisions have been taken.
“We are committed to the phase-out of all new cars relying solely on petrol and diesel engines by 2030, and to 100 per cent of new car and van sales being zero emission by 2035, and our legally binding net zero targets.
“Our consultation on the mandate will not change this, and will ensure we are taking a pragmatic and balanced approach to the ZEV transition.”
