Business

The UK government is to ban the use of non-disclosure agreements (NDAs) that silence employees who experience harassment or discrimination in the workplace, under landmark changes to the Employment Rights Bill.

The new amendments, tabled ahead of the Bill’s return to the House of Lords next week, will void any confidentiality or non-disparagement clauses that prevent victims – or witnesses – from speaking out about inappropriate or abusive conduct. The move has been widely welcomed by campaigners, including Zelda Perkins, former PA to Harvey Weinstein and founder of Can’t Buy My Silence.

Deputy Prime Minister Angela Rayner said: “We have heard the calls from victims of harassment and discrimination to end the misuse of NDAs. It is time we stamped this practice out – and this government is taking action to make that happen.”

The changes are part of a broader effort by ministers to modernise workplace protections and tackle poor working conditions. Employment Rights Minister Justin Madders added: “These amendments will give millions of workers confidence that inappropriate behaviour in the workplace will be dealt with, not hidden.”

NDAs were originally designed to protect commercial secrets, but in recent years have been used by some employers to gag employees from speaking out about mistreatment. High-profile abuse scandals – from Harvey Weinstein to institutional cases in the UK – have exposed the misuse of NDAs to silence whistleblowers and victims.

Under the new rules, confidentiality clauses that seek to prevent a worker from speaking about harassment or discrimination will be null and void. Employers will also be allowed – and encouraged – to publicly support victims without legal risk.

The legal change follows years of pressure from campaigners and MPs. Sarah Owen, chair of the Women and Equalities Committee, and shadow transport secretary Louise Haigh have supported the campaign, while Perkins said the changes would “put the UK at the forefront of global protections.”

“This is a huge milestone,” Perkins said. “Above all, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t.”

However, legal experts warn there may be unintended consequences. Nikola Southern, employment partner at Kingsley Napley, said: “While the ban on NDAs in harassment cases is a welcome step for transparency, it could reduce victims’ control over their own confidentiality. Some individuals may want to protect their identity, and employers may become more reluctant to settle.”

She added that employers should now urgently review template contracts and settlement agreements to ensure they are compliant.

The proposed NDA ban builds on other reforms included in the Employment Rights Bill, which forms part of the government’s wider “Plan for Change” aimed at updating UK labour laws for a modern economy.

If passed, the legislation will mark a significant shift in how workplace misconduct is handled, replacing silence and secrecy with transparency and accountability.

Read more:
Government bans NDAs that silence harassment and discrimination victims

British steelmakers face mounting uncertainty as crucial talks with the United States over tariffs remain unresolved just days before a key deadline set by former US president Donald Trump.

No 10 confirmed on Monday that the UK has not yet finalised a deal to eliminate US tariffs on steel and aluminium exports, raising fears that British producers could still be subject to a punishing 50% tariff hike.

The UK had previously secured a reduced 25% tariff rate through earlier negotiations, and officials have since been working to lower that further — ideally to zero. However, Downing Street was unable to say whether it was confident a full exemption could be agreed before the 9 July deadline set by the Trump administration.

“Our work with the US continues to get this deal implemented as soon as possible,” a government spokesperson said. “That will remove the 25% tariff on UK steel and aluminium, making us the only country in the world to have tariffs removed on these products.”

While the US has agreed in principle to eliminate tariffs following a UK-US agreement signed at the G7 summit in Canada last month, the deal has yet to be formally implemented. Trump’s administration has indicated it will begin notifying trading partners who have not completed deals by 9 July, with new tariff rates due to take effect from 1 August.

Trump’s commerce secretary, Howard Lutnick, clarified that while letters would go out on 9 July, the tariffs themselves would be imposed from the beginning of August — giving British negotiators a narrow window to finalise terms and avoid disruption to exports.

Pressed on whether British ministers were confident UK steel firms would avoid being hit by the full 50% tariff, the No 10 spokesperson reiterated that “discussions continue” and emphasised the importance of ongoing engagement.

“We have very close engagement with the US, and the US has been clear that it wants to keep talking to us to get the best deal for businesses and consumers on both sides,” the spokesperson added.

The stakes are high for Britain’s steel industry, particularly following the UK government’s intervention earlier this year to prevent the closure of British Steel’s Scunthorpe plant by taking temporary public control of the company.

The ownership of British Steel by China’s Jingye Group has long been a point of contention in UK-US trade talks. Washington has raised concerns about the potential for Chinese steel to be routed through British operations in an attempt to circumvent existing US tariffs on Chinese imports.

An executive order implementing parts of the UK-US trade agreement highlighted the importance of securing supply chain integrity and transparency around the ownership and sourcing of steel and aluminium products. The order stated that the UK “has committed to working to meet American requirements on the security of the supply chains … and on the nature of ownership of relevant production facilities”.

The delay in resolving steel tariffs stands in contrast to other parts of the UK-US trade agreement. Under the deal agreed by Prime Minister Keir Starmer and President Trump at the G7, the UK aerospace sector will benefit from zero US tariffs, and tariffs on British-made cars have been reduced from 25% to 10%.

The next few days will be crucial. With less than a week to go until the US begins issuing notices to trading partners without a deal, British steel manufacturers and their employees remain in limbo, awaiting confirmation that their exports will be protected from steep US trade penalties.

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UK steel firms on edge as US tariff deadline looms amid incomplete deal

The UK’s efforts to level up its economy are under renewed scrutiny as a growing digital divide emerges between small businesses in London and those across the rest of the country.

According to new research released today by e-Residency, nearly three-quarters (74%) of SMEs outside the capital report having no access to digital support programmes such as mentoring or accelerators – compared to 67% of London-based SMEs actively using them.

The findings point to a widening opportunity gap driven by disparities in digital infrastructure, awareness of support schemes, and proximity to investment and business networks. While two-thirds of London SMEs say access to high-speed internet and remote working hubs has significantly boosted their growth, only 37% of regional SMEs report the same benefits.

The imbalance is also reflected in business confidence and growth trajectories. In the capital, 78% of SMEs describe their company as established or growing. That figure drops to 62% for those operating outside of London. The difference in digital engagement is stark: 96% of London SMEs are aware of national digital support schemes, with 62% using them. Outside London, awareness falls to 60%, with only 24% using available tools or software.

The research also sheds light on how location shapes strategic thinking. In London, the majority of SMEs cite their geographic location and access to investors as central to digital investment success – with 82% saying being in a major city helps attract funding. Only 44% of regional SMEs agree. Regional firms, by contrast, place greater importance on access to local infrastructure and talent pools.

Funding confidence mirrors this trend. Just 15% of regional SMEs rate their access to funding as “very adequate”, compared to 31% of London firms. Similarly, 60% of London SMEs report strong access to business partnerships, against 48% for regional founders.

With domestic resources limited, many London-based entrepreneurs are now exploring international opportunities to support their digital growth. Three in four (76%) say they are considering cross-border business structures to access better digital services and infrastructure, compared to just 29% of regional SMEs.

Liina Vahtras, Managing Director at e-Residency, said the research highlights the need for more inclusive digital support across the UK.

“Founders in every corner of the UK have the talent and ambition to scale, but the path to digital growth still feels clearer in London,” she said. “This isn’t just about internet speed or software – it’s about confidence, networks and visibility. That’s where tools like e-Residency can help level the playing field, enabling businesses to grow globally without leaving the communities they’re rooted in.”

The findings come at a critical time for small businesses already grappling with inflation, skills shortages and shifting customer expectations – reinforcing calls for targeted regional investment to close the digital opportunity gap.

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Digital divide widens as 74% of regional SMEs miss out on vital support

ThinCats, the alternative lender focused on mid-sized SMEs, has announced a record year of lending for the 12 months to 30 June 2025, providing £381 million in funding to businesses across the UK.

The figures mark a marginal increase on last year’s £378 million and come despite significant macroeconomic headwinds affecting borrower demand.

The lender’s robust performance is particularly notable given the turbulent backdrop of rising business taxes, persistent global tariffs, and slower-than-expected base rate cuts. These pressures have weighed on the market overall — industry data from Experian reveals UK M&A activity has declined 24% year-on-year. Yet ThinCats has maintained its position as the UK’s leading debt provider for mergers and acquisitions.

The company’s results also shed light on shifting demand patterns. Lending to owner-managed businesses has risen sharply, particularly in the wake of last autumn’s Budget. There was also a notable uptick in use of ThinCats’ transactional capital facility, a flexible borrowing product designed to support ‘buy and build’ acquisition strategies. In contrast, the volume of private equity-sponsored deals remained steady.

In total, ThinCats has now lent over £2 billion to UK firms since its inception, with assets under management currently just under the £1 billion mark.

Mike Hackett, Chief Commercial Officer at ThinCats, said: “It’s been a hugely challenging year for UK companies. At home and abroad, we have seen enormous challenges, but adversity can often lead to opportunity. We’ve continued to see interest and borrower activity across sectors like healthcare, telecoms and B2B services.”

He added: “There continues to be huge resilience across the UK’s mid-sized SMEs — the backbone of the economy — who are still seeking capital to grow, invest and expand. Despite market uncertainty, sentiment is improving and we are already seeing increased activity and more deals in the pipeline.”

ThinCats’ consistent growth and strong performance in core segments like owner-managed and acquisition-driven businesses reinforce its role as a key non-bank finance partner for SMEs navigating a complex and shifting economic landscape.

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ThinCats hits record lending levels with £381m despite challenging UK business climate

Labour should be worried. That’s not to sound like a gurning tabloid—we’re better than that—but the early signs are far from reassuring.

Since April, when the non‑dom knockouts arrived and Chancellor Rachel Reeves scrapped the centuries‑old offshore loopholes, stories have been piling up: wealthy directors departing, shell‑companies relocating, ultra‑rich heirs re‑domiciling elsewhere. A Financial Times investigation found that nearly a third of non‑dom clients are now decamping to UAE, Italy or Switzerland. Henley & Partners has predicted a loss of 16,500 millionaires this year alone—evacuating around $92 billion in investable assets.

That’s the headline. But is it the full story? Dozens will always shuffle off, and some early sell‑offs were likely opportunistic, triggered by panic‑selling in overheated London markets. Indeed, in 2017 when Osborne tightened non‑dom rules, there was a spike—but by 2019 emigration had fallen back below pre‑reform levels. That suggests the real economic damage comes not from those who’ve bolted already, but from those still sitting on the fence, ready to skedaddle at the next tax trumpet.

So, what might Rachel Reeves do? Reports suggest she’s already reconsidering charging inheritance tax on offshore holdings after ten years of residence—the element deemed most punitive. Expect softening. The Treasury is apparently exploring “tweaks without backtracking” to stem capital flight. In plain English: make it slightly less unpalatable, so the bleats from Mayfair aren’t quite so loud.

One might say: why worry about millionaires offloading handbags and primary residences when ordinary UK voters are left draped in austerity? The hard truth is that non‑doms aren’t merely sitting ducks; many are significant investors, philanthropists and employers. Some weigh in with a hefty £400,000 annually in tax contributions and average asset investment of £118 million. The FT warned that a mass exodus could burn a hole in public finances and shutter growth strategies  .

That said, losing a tranche of “wealth parkers”—those who simply stash foreign money in London—might be a blessing. New Statesman’s Will Dunn points out that many non‑doms contribute little in economic substance; they can afford swanky flats but don’t generate domestic employment. Their departure could, perversely, free up homes for productive buyers and ease the supply bottleneck—an upside indeed.

Labour’s dilemma is this: it promised fairness (“those with the broadest shoulders…” etc.) and scrapping non‑dom was a powerful symbol. But symbols aren’t budgets. If the revenue is illusory—if exits exceed estimates and the tax base shrinks—this tightrope act looks reckless. The Office for Budget Responsibility’s projected £33.8 billion revenue gain over five years could quickly unravel  . Worse still, if wealthy high‑flyers vanish, office windows darken, venture capital freezes and the party is left with empty coffers and failing pledges.

Reeves now faces pressure on two fronts: to stand firm and close loopholes, and to not frighten capital. Early indicators suggest she’ll settle somewhere in between—curtail non‑doms in principle, soften key elements in practice. That may mollify non‑doms enough to stay, yet to Labour’s own base it will look like a climb‑down. And paralysis is worse than policy—because inaction portends shrinking receipts and yet more austerity.

So how worried should Labour be? Quite. Even if a full‑scale exodus doesn’t come to pass, the uncertainty, headline scares and wavering reforms haven’t been kind. And against that backdrop, whispers of a wealth tax—on assets over £10 million at two per cent—only add fuel to the flight fantasy  .

Perhaps the answer is not simply hammering the wealthy, but offering carrots: adjustment periods, phased implementation, exit taxes, residence bonds. A meaningful immigration route linked to investment, as others have suggested. But this requires imagination—and a sense that Labour is still in the game.

In short: Labour should worry, but not panic. Instead of reversing, they must recalibrate. The non‑dom rebellion isn’t a political crisis unless treated as one—by shutting down the exodus without sacrificing the underlying principle of a fairer tax system. Reassurance, clarity and nuance are key—anything less invites both rich people and public trust to take flight.

Read more:
Flight of the non-doms: how worried should Labour be about the super‑rich leaving the UK?

Apple has filed an appeal against a landmark €500 million (£430 million) fine imposed by the European Commission earlier this year, escalating tensions between Silicon Valley and Brussels over digital market regulation.

The penalty — one of the largest ever handed to the iPhone maker by the EU — came after the Commission ruled that Apple had unfairly prevented app developers from directing users to cheaper options outside its App Store ecosystem, in breach of the EU’s new Digital Markets Act (DMA).

In a statement issued Monday, Apple accused the Commission of “going far beyond what the law requires,” arguing that the decision forced it to impose “confusing” new terms on developers and implement business rules that it claims are harmful to both developers and consumers.

“Today we filed our appeal because we believe the European Commission’s decision – and their unprecedented fine – go far beyond what the law requires,” Apple said. “As our appeal will show, the EC is mandating how we run our store and forcing business terms which are confusing for developers and bad for users.”

At the heart of the case is the concept of “steering” — Apple’s previous policy that blocked app developers from informing users of cheaper alternatives outside its App Store. Brussels ruled that such restrictions contravened the DMA, a sweeping regulation aimed at reining in Big Tech’s dominance by enforcing fairer market access.

Apple says the Commission has unlawfully expanded the definition of steering beyond what was intended by law, particularly by insisting that developers be allowed not just to link to external websites, but also promote external offers directly within their apps.

The appeal comes after Apple made changes to its App Store policies in a bid to comply with the DMA and avoid daily fines of up to €50 million. These included new fee structures and revised terms for developers in the EU — changes that Apple now says were imposed under threat and are counterproductive.

The EU’s move has reignited transatlantic tensions over the treatment of American tech giants. Former Trump administration trade adviser Peter Navarro has described the EU’s regulatory clampdown as “lawfare” against US companies, claiming it is a tool for non-tariff economic warfare. The sentiment echoes concerns in Washington that Brussels is unfairly targeting American firms like Apple, Meta, and Google.

Meanwhile, the European Commission has remained firm. Henna Virkkunen, its vice-president for tech sovereignty, insisted earlier this year that the EU would not “rip up its rules” to secure a trade deal with the US, even as Donald Trump threatens a 50% tariff on EU imports if no deal is reached by 9 July.

Tom Smith, a competition lawyer at Geradin Partners and former legal director at the UK Competition and Markets Authority, commented:

“Apple fundamentally hates being forced to change how it operates its App Store. The blunt truth is that it’s worth spending a few million on legal fees to delay opening up a market worth many billions a year.”

The Commission has said it is ready to defend its decision in court.

The case now moves to the General Court of the European Union, which will weigh Apple’s arguments against the Commission’s landmark interpretation of the DMA — a ruling that could set the tone for future enforcement of Europe’s tech laws.

Read more:
Apple appeals €500m EU fine over App Store restrictions, accusing Commission of overreach

UK house prices flatlined in June, with market momentum fading after the end of temporary stamp duty relief and amid growing economic uncertainty, according to the latest figures from Halifax.

The average property price in Britain remained unchanged last month at £296,665, following a 0.3% decline in May. This leaves prices £2,150 lower than at the start of the year and annual house price inflation running at just 2.5%—the slowest pace since July 2023.

Economists had predicted limited movement in prices, and the latest data confirms that the housing market is struggling to regain its footing. The sluggishness comes despite falling mortgage rates earlier this year and improving wage growth, which had helped to revive activity in the early months of 2024.

However, the recent change to stamp duty thresholds in April has had a chilling effect. The removal of relief for first-time buyers sparked a rush to complete purchases before the end of March. Halifax estimates that buyers who completed on 31 March could have saved up to £11,250 compared to those who missed the deadline by a day.

That rush was followed by a slowdown in activity, with the market still working through the after-effects. “The stagnation in the Halifax house price index in June suggests that the housing market remains slow to recover from both the rise in stamp duty on April 1 and the weak economy,” said Ashley Webb, UK economist at Capital Economics.

Webb had previously forecast house price growth of 3.5% in 2025 but now believes that may be too optimistic, given the slower-than-expected recovery.

There are, however, pockets of resilience. Northern Ireland remains the UK’s strongest regional market, with annual price growth of 9.6%. The northwest of England also saw relatively robust gains at 4.4%. By contrast, London and the southwest saw much weaker growth of just 0.6% and 0.5% respectively.

“The further you get from London, the stronger the trend,” said Adrian Kearsey, a construction sector analyst at Panmure Liberum.

Halifax said there had been signs of renewed activity in recent weeks, including a rebound in mortgage approvals and transactions, driven in part by higher wages and improved affordability tests. First-time buyer numbers have now returned to levels seen before the stamp duty changes.

Still, affordability pressures remain acute for many homeowners, particularly those nearing the end of fixed-rate mortgage deals. Although inflation is falling, it remains above the Bank of England’s 2% target, and there are signs the labour market is softening.

Financial markets expect two interest rate cuts from the Bank of England before the end of the year, which would ease pressure on mortgage borrowers. If those cuts materialise, Halifax expects “modest house price growth” through to the end of 2025.

Amanda Bryden, head of mortgages at Halifax, noted: “Challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. But the market is showing resilience, and assuming a stable economic backdrop and lower borrowing costs, we could see a gradual recovery in the second half of the year.”

Read more:
UK house prices stall in June as stamp duty change and weak economy hit confidence

Data is the lifeblood of our current world, and yet it’s largely misunderstood or undervalued. Knowing you need to use data to extract better analytics and make better decisions is one thing,

but actually knowing how to prepare it, sort it, secure it, and then finally use it is another. The good news is that every one of those processes can improve the others. Preparing data makes it easier to sort, sorting data makes it easier to secure it, and organizing your data makes it easier (and more effective) to use.

The problem is the volume. We are producing more data than ever before, and the amount is only increasing. This increasing amount of data leaves holes in your understanding of your data and your defense of it. Shadow data – data you have, but aren’t aware of – is a great example of this.

So, what’s the solution? Data security posture management. A robust DSPM solution can help you wrangle your data and finally get on top of it. Here’s how to get started today.

What Is DSPM?

A DSPM platform finds, sorts, and classifies your data across ecosystems. This means it will find all the data across your on-premises infrastructure and cloud accounts, so you have one unified view of where all your data is.

An effective DSPM can help you:

Structure your data growth, allowing you to easily monitor and contain your growing collection of information.
Find shadow data, removing potential leaks or back-door entrances to your system from data or user access you did not know you had.
Easily remain compliant by ensuring you are adhering to data policies like GDPR, HIPAA, or CCPA.
Gain a comprehensive overview of all your data across the cloud and on-premises, making it easier to secure.

How to Get Started

While a robust DSPM platform will do a significant amount of the heavy lifting without an agent, there are still steps you will need to take in advance to set up your new system for success.

Inventorize Your Data Repositories

DSPM platforms can effectively hunt down shadow data, but not if it’s not connected.That’s why the first step is to pull together every cloud storage account and every SaaS platform, and any relational or NoSQL database, file server, or source code repositories that you may use.

Set Up the Data Classification Rules

Enable automated data classification and, if possible, customize them. You may need personally identifiable information (PII) encrypted, for example, if you work with known persons and need to keep their identifies fully confidential. You may need to make sure your data is compliant with a niche template for internal regulation, and so on.

Map Access Rules

Access restrictions are an essential component of improving your security infrastructure. While DSPM can automatically identify outdated or publicly accessible files, it can’t immediately know who in your staff can or cannot access datasets unless you tell it. That’s why you’ll need to map out access restrictions with role-based access control (RBAC) policies, OAuth tokens, and by noting which service accounts have access to your information.

Enable Ongoing Monitoring

DSPM systems do work around the clock, but like with any system, you need to continually check in on it and update it so that it continues to work effectively. Data environments constantly change, for example. You need to update the system when you add a new SaaS or cloud account or onboard a new employee.

Read more:
Data Security Posture Management – The Next Big Data Solution Your Business Needs (And How to Get Started)

Amazon’s longest-ever Prime Day event, running from 8–11 July, is expected to generate record-breaking sales of $21.4 billion globally, with UK shoppers forecast to contribute nearly £2 billion, according to delivery specialists Parcelhero.

But while consumers and marketplace sellers are set to benefit, concerns are rising about the broader implications of Amazon’s growing dominance in the UK economy.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., said the sale, which has expanded to four days for the first time, is set to deliver a 60% surge in global gross merchandise value (GMV) compared to last year. Amazon’s own product sales are projected to hit $11.5bn, while independent sellers could generate a further $10bn – a 67% year-on-year rise.

That growth would be good news for UK SME traders who use Amazon’s marketplace, Jinks said, especially with UK Prime Day sales predicted to jump from £1.2bn last year to £1.92bn this year.

Last year, Amazon reported that over 100,000 items were sold per minute during Prime Day, and customers globally saved around $2.5bn. The event is being closely watched amid speculation that it is designed to cushion Amazon’s US operations from future disruptions, particularly new tariffs proposed by President Trump.

But while the sales uplift is welcome, Jinks cautioned that Amazon’s expanding grip on UK e-commerce could come at a cost. The retail giant has pledged to invest £40bn in the UK over the next three years, with plans to open four new fulfilment centres and significantly expand its delivery and office infrastructure.

“As Amazon’s dominance grows, there’s a real risk that smaller sellers become overly dependent on the platform,” said Jinks. “If that relationship sours, or a seller is suspended or delisted for policy breaches – or even just because their products are deemed CRaP (Cannot Realise a Profit) – it can be devastating.”

Amazon is also under scrutiny from the UK’s Groceries Code Adjudicator, which has launched a formal investigation into the company’s supplier practices. The probe follows a sharp drop in Amazon’s compliance score in the GCA’s 2024 annual survey, falling from 59% to just 47%, the lowest of all major retailers.

“There’s no doubt Amazon continues to innovate,” Jinks added. “Prime Day brings real opportunities for savings and for sellers to thrive. But as it becomes the pipeline for nearly everything we buy, UK policymakers and traders must remain alert to the risks of over-reliance.”

With new technologies such as drone delivery and 3D printing on the horizon, Amazon’s influence is set to grow even further. But the balance between innovation, fair competition and long-term sustainability for UK retailers remains a delicate one.

Read more:
Prime Day poised to top $21bn globally – but UK experts warn of Amazon dominance risks

UK carmakers are on course to meet this year’s electric vehicle (EV) sales targets, despite having successfully lobbied the government to soften the rules.

In the first half of 2025, EVs accounted for 21.6% of new car sales, according to analysis from thinktank New AutoMotive. This puts the industry only marginally below the adjusted target of 22.06% once official “flexibilities” are factored in – such as borrowing credits from future years and earning partial credit from selling hybrids.

The data undercuts the industry’s argument that the zero-emission vehicle (ZEV) mandate introduced by the previous Conservative government was too strict. That policy, which required carmakers to increase the share of electric vehicles sold each year or face fines of up to £15,000 per car, faced intense lobbying from automotive leaders.

In April, new business secretary Jonathan Reynolds confirmed that Labour would ease the requirements. The changes include more generous flexibilities and reduced penalties. Carmakers argued the rules were unworkable and even blamed factory closures – including Stellantis’s decision to shut its Luton van plant – on the ZEV mandate. However, earlier statements by company executives cast doubt on that rationale.

Ben Nelmes, CEO of New AutoMotive, said: “Carmakers are within touching distance of their targets for 2025 before taking into account the government’s decision to weaken the targets. This impressive progress should reassure ministers that ambitious targets spur the innovation and dynamism the UK needs to achieve net zero and get ahead in the global shift towards electric vehicles.”

The government’s rollback is expected to result in increased carbon emissions, despite its claims the environmental impact will be negligible.

New AutoMotive’s analysis shows that Japanese manufacturers are lagging furthest behind. Nissan, for instance, is waiting for its Sunderland plant to begin production of the next-generation Leaf. Toyota and JLR (Jaguar Land Rover) are also behind their effective targets.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the market is moving forward – with one in four new car buyers choosing an EV in June – but not quickly enough. He pointed out that fleet buyers account for most of the EV demand due to tax incentives, while just 13% of private buyers have opted for electric this year.

“The lack of natural demand among private consumers has forced manufacturers into unsustainable discounting,” Hawes said. “To meet targets, they are being hit with the double whammy of offering heavy incentives while facing punitive fines.”

Consumer reluctance to go electric stems from the high upfront cost of EVs and patchy charging infrastructure. Hawes called on the government to follow international examples and reinstate direct purchase incentives for consumers – which, he said, had once helped the UK become a world leader in the transition to zero-emission vehicles.

Despite the progress, campaigners argue the decision to loosen targets sends the wrong message. They warn it may slow the pace of innovation and undermine the government’s net zero ambitions at a crucial time.

Read more:
UK carmakers near EV sales targets despite government weakening rules after industry pressure