Jaguar cars on a production line (Image: Getty)

Prime Minister Andy Burnham will consider watering down laws forcing motorists to buy electric cars, after manufacturers warned thousands of jobs are at risk. But the Government is refusing to back down over a planned ban on the sale of new fully-petrol or diesel cars from 2030, and new hybrid vehicles from 2035.

Instead, a consultation launched by the Department for Transport will look at whether to relax tough rules designed to reduce sales of petrol and hybrid cars before those dates. Transport Secretary Heidi Alexander said: โ€œThe UK EV market is strong – sales are up, British manufacturers and charge point operators are investing billions, alongside our backing of ยฃ7.5bn, including our Electric Car Grant that has helped over 160,000 people make the switch.

โ€œItโ€™s right we keep targets under review to ensure theyโ€™re practical and back British industry. The end goal hasnโ€™t changed โ€“ but we need to take business with us on the journey, and thatโ€™s exactly what weโ€™re doing today, by making sure industry has the chance to shape how we get there.โ€

Under the Governmentโ€™s Zero Emission Mandate (ZEV), vehicle manufacturers in the UK must already ensure 33% of new cars are electric, and face fines if they fail to comply. This is set to rise steadily to 80% by 2030.

But carmakers have warned that drivers are reluctant to buy electric vehicles, and the industry spends ยฃ5 billion every year providing discounts. The automotive sector, which employs almost 800,000 people including 156,000 directly in manufacturing, has said this is unsustainable and jobs are at risk. Firms include Jaguar Land Rover, with plants in the West Midlands and Merseyside, and Nissan, a major employer in the North East.

Possible changes to be considered by the Government include reducing the target so that just 50% of new cars must be fully electric by 2030. This would allow more hybrid vehicles to be sold – although the total ban on hybrids after 2035 would remain.

Industry leaders welcomed the move. Mike Hawes, Chief Executive of the SMMT, said: โ€œWe welcome governmentโ€™s consultation on the ZEV Mandate and how it should change to better support the UKโ€™s transition. Industry remains fully committed to a zero-emission future, investing billions in new technologies, products and, along with government, consumer incentives.

โ€œThe regulation was conceived, however, under very different conditions โ€“ cheaper energy, rapidly declining production costs, and more optimistic global demand expectations.

โ€œRegulatory targets are now running ahead of current consumer demand, so this review is a timely opportunity to optimise the pace of change.

โ€œThis is a regulation that increasingly dictates consumer choice โ€“ and therefore automotive companiesโ€™ future strategies and viability โ€“ so it must work for all involved.

โ€œThat means a commercially sustainable transition that supports UK competitiveness, investment and jobs while delivering greater choice and affordability for motorists โ€“ with a rapid resolution needed to unlock those benefits for everyone.โ€

Environmental campaigners accused the Government of failing to take the threat of climate change seriously. Holly Brazier Tope, director of politics at think tank Green Alliance, said: โ€œThere is a bitter irony in the government consulting on weakening one of the UKโ€™s most powerful climate policies at the very moment this summerโ€™s devastating heat is making the reality of climate change impossible to ignore.โ€