British car production 'to lead the world in the years to come' as Rachel Reeves announces major investment

Citing the UK's car production sector, which is world-leading, the industry will be boosted by research and development funding. It will rise to a record high of £22billion a year.

The Labour MP for Leeds West and Pudsey noted that car production, alongside other major sectors, including artificial intelligence, needed to be backed.

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She said: "We want our high-tech industries in Britain today to continue to lead the world in the years to come.

"In car production, in aerospace and in life sciences, so we are backing out innovators, backing our researchers and backing our entrepreneurs with R&D funding rising to a record high."

Conservative Shadow Chancellor Mel Stride warned that Rachel Reeves would have to return to the despatch box at the Autumn Budget and introduce new taxes.

Labour has already announced the decision to remove red tape from planning permissions on the installation of new electric vehicles.

READ MORE: Labour slashes red tape on electric vehicle chargers to save drivers £1,100 a year and 'months of delays'

When installing new electric chargers, drivers and businesses will no longer need to apply for planning permission, saving on unnecessary delays.

At present, there are almost 81,000 electric vehicle charging devices across the UK, with hopes that the removal of red tape will rapidly accelerate installations.

Under the previous Conservative administration, it was outlined that the UK should hit a target of 300,000 chargers by the end of the decade to ensure all drivers have faith in the electric vehicle system.

Commenting on the removal of red tape, Future of Roads Minister Lilian Greenwood, said: "We're cutting down on paperwork to power up the EV revolution so that drivers, businesses and those looking to make the switch will have more chargepoints to power from and less red tape to deal with.

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"We continue to make the switch to EVs easier, cheaper and better by investing over £2.3billion to support drivers and back British carmakers through international trade deals - creating jobs, boosting investment and securing our future as part of our Plan for Change."

Further steps will be taken to boost technology across British roads, after it gave the green light to self-driving vehicle technology, with pilot trials of hire taxis starting next year.

Transport Secretary Heidi Alexander said the Government would fast-track pilot schemes, which will see self-driving commercial pilots on England’s roads by spring 2026.

The sector is also expected to create 40,000 jobs and add a whopping £42billion to the economy within the next 10 years.

Alexander, who represents Swindon South for Labour, said autonomous technology was the "future of transport" and would help the UK become a world-leader in the industry.

Similarly, Julian David OBE, CEO of techUK, said: "The UK must also make sure it doesn’t fall behind other countries despite the promising progress made in 2024 to create new, bespoke legislation for AVs.

"The ability to deploy truly driverless passenger services from 2026 is a major milestone towards bringing the benefits of autonomy to communities across the country.

"That is why we warmly welcome plans to accelerate delivery of the necessary regulatory changes to make this a reality."