Cabinet split revealed over ‘challenging’ goal for electric carmakers

Britain’s targets for electric vehicles have helped to drive investment in the country, the energy security secretary has said in comments that point to a cabinet split.

Grant Shapps’s remarks are at odds with Kemi Badenoch, the business and trade secretary, who at the start of this week highlighted warnings by companies including Toyota and Honda over plans to fine carmakers for failing to produce enough electric vehicles.

Under a rule to be introduced in January, car manufacturers will be required to ensure that at least 22 per cent of their new sales in Britain are of emission-free models, rising each year to reach 80 per cent by 2030. Companies that break the rule will have to pay £15,000 for every non zero-emission car sold.