The UK's automotive sector will receive a massive boost in the coming years as the Government unveils its new Modern Industrial Strategy.
Unveiling the new framework, Prime Minister Keir Starmer, Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds said Labour was working on its Plan for Change.
The Modern Industrial Strategy will look to scale net zero transport options through battery innovation, electric vehicle manufacturing and sustainable aviation fuel.
The development of the new strategy will build on funding available from the Automotive Transformation Fund.
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The new Modern Industrial Strategy aims to boost electric vehicle manufacturing
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This was instrumental in securing a £250million investment from Vishay to build a new semiconductor cluster in Newport.
Batteries also play a crucial role in the future of British manufacturing, with the industry being prioritised for having the "greatest growth potential".
It added that the Government would partner with industry to implement the aims of the Industrial Strategy.
This will be completed by funding commitments and joint industry-Government groups such as the Automotive Council and UK Battery Strategy Taskforce.
Labour highlighted the importance of the British manufacturing sector
MINIThe new strategy also references the Government's decision to "refresh" the Zero Emission Vehicle (ZEV) mandate.
The Zero Emission HGV and Infrastructure Demonstrator is being used to introduce hundreds of battery electric and hydrogen fuel cell vehicles.
It noted that HGVs will also benefit from the Lower Thames Crossing development, with 4.4 million vehicles expected to use the route in its first year of operation.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the UK's "number one priority" must be to address the high cost of energy.
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He said this would enable the sector to invest in technologies and people that will give the country a "competitive edge".
The industry boss added: "The publication of an Industrial Strategy - one with automotive at its heart - is the policy framework the sector has long-sought and Government has now addressed.
"Such a strategy - long-term, aligned to a trade strategy and supported by all of Government - is the basis on which the UK automotive sector can regain its global competitiveness.
"Making the UK the best place to invest now depends on implementation, and implementation at pace, because investment decisions are being made now against a backdrop of fierce competition and geopolitical uncertainty."
The EV sector is set to receive a boost from the Modern Industrial Strategy
GETTYAs part of the new Modern Industrial Strategy, the DRIVE35 programme for automotive will receive increased funding stability.
Other programmes benefitting from the research and development funding include the Aerospace Technology Institute, the National Quantum Computing Centre and the Laboratory of Molecular Biology.
Self-driving vehicles will also play an integral role in the future of mobility, with the British Standards Industry working closely with the Centre for Connected and Autonomous Vehicles to support trials.
The BSI is working with organisations like Wayve, OXA, Horiba Mira and WMG to develop the suitable conditions to develop the technology ahead of a wider rollout expected in 2027.
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