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What does the new Labour government mean for motorists and car insurance policies?

As the Labour party celebrate a victory, securing their position as the next UK government, Brits are seeking guidance on how this change might affect aspects in their daily lives, including their taxes, homes, and cars. 

As the parties have battled with promises of improving roads, reducing vehicle emissions and prioritising electric cars, experts at car warranty provider ALA Insurance have analysed what the new Labour government means for motorists. 

  1. Labour have pledged to reinstate the petrol and diesel ban to 2030

By pledging to reinstate the petrol and diesel ban by 2030, the Labour government is promising to ban the sale of new petrol or diesel vehicles within the next 6 years, bringing this target forward five years from the Conservative’s pledge of 2035. 

This zero emission vehicle mandate has called for more financial support for those wanting to buy electric cars, including reinstating the previous plug-in grant in 2022. Alongside this, it is mandatory for car manufacturers to produce and sell an increasing proportion of electric vehicles.

In addition, Labour have also confirmed that they will support electric vehicle users by installing more charging stations and points across the country. Although a concern remains surrounding the affordability of electric vehicles and the accessibility for UK motorists. 

  1. The new government has pledged to fix a million potholes a year in England

As part of this promise, Labour have voiced support for improving road quality by properly funding local councils. The previous Conservative government promised to put £8.3bn into road repairs over ten years between 2024 and 2034, reallocating the remaining HS2 funding. However, Labour have unveiled plans to delay the A27 bypass in Sussex to invest an additional £320m into road maintenance over five years. Although this has been widely criticised for underestimating the funding required to effectively repair roads across Britain. 

  1. Labour plan to tackle rising car insurance costs

In 2024, car insurance experienced a 58% price increase across the UK, meaning that the average car insurance policy is now £995*. In response, Labour’s shadow transport secretary Louise Haigh has told The Mirror Labour’s plans to “call in the regulators to crack down on any unfair practices and to come clean on the causes of soaring costs for consumers.”This brings hopes of more fairly priced car insurance for motorists. 

Simon England, Managing Director and Founder of GAP provider, ALA Insurance has commented, 

“As a provider of GAP insurance and car warranty policies with a commitment to championing the consumer, we embrace the new government's pledge to tackle unfair car insurance costs, and better protect motorists to create a fairer and more sustainable future for all UK drivers.”