Nationwide, the UK General Election is creating waves, with industries waiting with bated breath and anticipation for both the political and governmental outcomes. This election, deemed one of the most significant of this century, has industries anxious about its impact on their operations.

While attending the SMMT International Automotive Summit on Tuesday 25 June, the HBPR team noted the impending UK General Election as a recurring theme in discussions. In this period of political transition and unrest, keynote speakers Chris Giles from The Financial Times and Rachel Wolf from Public First highlighted the rarity of the current climate. You can watch full versions of both speakers’ talks here.

This election follows a series of unprecedented events: the 2016 Brexit referendum, COVID-19 (resulting in nearly 300,000 deaths in the UK), the successive tenures of Prime Ministers Theresa May, Boris Johnson, Liz Truss, and Rishi Sunak, the war between Ukraine and Russia, and shortages in food, fuel, and electricity, alongside a cost-of-living crisis spurred by inflation (a subsequent consequence of these events) – all under the Conservative party’s governance.

Rachel Wolf, founder of Public First, former advisor to the Prime Minister, and author of the Conservative party manifesto in 2019, provided an overview of the political landscape at the SMMT Summit. She described this election as being driven by public discontent with the Conservative party, despite significant negative perceptions of opposition candidate Kier Starmer. She emphasised that this is not a policy-focused election. Most party manifestos are vague, addressing the recovery of the NHS post-COVID-19 and tackling the cost-of-living crisis. Climate change and sustainability are also key issues, particularly relevant to the automotive industry, which faces significant net-zero regulations and targets.

Manifestos promise broad improvements to road quality and transport systems, but clear impacts on the automotive industry remain uncertain. Labour has made a firm pledge to reverse the Conservative net zero extension (moving the target from 2030 to 2035), while Reform UK has vowed to scrap net zero measures and targets altogether, removing plans for ULEZ expansions and low emissions zones, while additionally working towards decreasing fuel prices.

Despite the lack of clarity from political parties and candidates, Chris Giles, Economics Editor and columnist of the Financial Times, argued that the current state of the economy might offer insights into the automotive industry’s future.

In his keynote speech at SMMT Summit, Giles discussed the impact of Brexit and COVID-19 on the automotive industry. The Brexit deal, or lack thereof, with the European Union left the UK in a vulnerable position, complicating and increasing the cost of importing and exporting goods. This severed many trade deals with the EU, causing a shift towards more accessible international goods. As of January 2024, UK trade exports have decreased by 13 per cent, amounting to an estimated loss of £140 billion. Consequently, the UK has increased imports from non-EU countries such as China, Norway, the USA, Turkey, and India, with import costs rising to over £50 billion.

China’s economy continues to grow, exporting more goods and services than ever before. While global economies were all similarly affected by COVID-19, the US has recovered due to measures tackling unemployment and keeping the economy open – unlike China. Trade tensions, initiated by then-President Donald Trump’s tariffs in 2018, have escalated between China and the West. China’s competitive pricing, driven by abundant natural resources and low-paid labour, has increased international trade tensions – tensions that create new opportunities for UK industries.

Historically, the UK has been a leader in the automotive and engineering fields, with strong consumer confidence in British products. This continues to be evident with the development of new production plants such as JLR’s Future Energy Lab (and its subsequent £250 million investment) and Silverstone Park, recognised as one of the most innovative science, technology, and research spaces in the UK, spanning over a million square feet. Business investment, governmental incentives and deals, and consumer confidence could be key to the UK’s economic recovery, securing a strong future for the British automotive industry. The Labour party has expressed some intent to invest in local and domestic industries, but the General Election results and a new era of governmental leadership will be determining factors for the future of UK industry.

The outcome of the General Election will significantly influence the regulatory landscape, funding opportunities, and trade policies that directly affect the automotive sector. Companies within the industry must stay vigilant and adaptive to navigate the potential changes brought by the new government. The right combination of governmental support and strategic industry investments can ensure the automotive sector not only survives but thrives in the coming years.

At HBPR, our work is closely conscious of current affairs and climates, especially concerning international relationships and sustainability measures. From EV fleet vehicles and technologies to restomods of classic British vehicles, we work in every corner of the automotive industry. If you need any advice or have questions about the changing landscape of the UK automotive sector, are seeking PR support or would like to collaborate, please get in contact at hannah@hannahburgesspr.com. Our door is always open.