20 September 2023
Responding to the Prime Minister’s speech today which confirmed that the 2030 ban on the sale of new petrol and diesel cars would be delayed until 2035, Stephen Haddrill, Director General of the Finance & Leasing Association, said:
“In 2019, the UK committed to a legally binding target of net zero emissions by 2050, but that was three Prime Ministers ago, and before the Covid and cost of living crises.
“The approach of subsequent PMs has seen the noisy launch of new initiatives followed by their quiet withdrawal – all while Government has publicly affirmed its unwavering commitment to Net Zero and, only weeks ago, critical staging posts like the 2030 ban on the sale of new petrol and diesel vehicles.
“While today’s announcement may be positioned by some as pragmatic, to those businesses that relied in good faith on the original 2030 deadline, it represents millions of pounds of mis-directed or mis-timed investment. As for the wholesale funders who provided that finance for firms, regaining their trust will be an uphill battle.
“Delivering net zero requires business and public confidence in policy – that is being squandered.”
Note to editors:
- In 2022, members of the Finance & Leasing Association provided £148 billion of new finance to UK businesses, households and the public sector.
- Of this total, £55 billion was provided by non-bank lenders. £34 billion was provided in the form of asset finance to businesses - £22 billion of which went to SMEs to fund new equipment, plant and machinery, or purchased software. £115 billion was provided in the form of consumer credit, which includes £50 billion of motor finance supporting the purchase of 84% of all private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.