Business Secretary Jonathan Reynolds is set to confirm the Government will consult on easing rules related to the phasing-out of new petrol and diesel cars, the PA news agency understands.

The Cabinet minister is expected to use a speech to the automotive industry on Tuesday night to announce that changes to flexibilities available to manufacturers as part of the zero-emission vehicles (Zev) mandate will be proposed.

Under the mandate, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, which generally means pure electric.

The threshold will rise annually, including to 28% in 2025.

Under the current rules, the mandate will reach 80% by 2030, but the Government has committed to bring the ban on the sale of new petrol and diesel cars and vans forward from 2035 to 2030.

Failure to abide by the mandate or make use of flexibilities – such as buying credits from rival companies or making more sales in future years – will result in a requirement to pay the Government £15,000 per polluting car sold above the limits.

The consultation, which will be launched in the coming weeks, is unlikely to propose changes to the mandate’s percentages.

It will include amendments to the options for how non-compliant manufacturers can avoid fines.

Mr Reynolds will give a speech to the annual dinner of the Society of Motor Manufacturers and Traders (SMMT) at London’s Grosvenor House Hotel.

Last week, bosses from the SMMT and major manufacturers met Mr Reynolds and Transport Secretary Louise Haigh to discuss the mandate.

They expressed concerns that the policy is putting jobs at risk at UK vehicle factories.

We do recognise the global challenges the industry are facing, which is why ministers have been getting around the table with key industry figures to discuss how we can ensure the transition delivers for them and the future of UK auto manufacturing.

The Prime Minister’s official spokesman said: “We do recognise the global challenges the industry are facing, which is why ministers have been getting around the table with key industry figures to discuss how we can ensure the transition delivers for them and the future of UK auto manufacturing.

“We’ll bring forward a consultation on our proposals in this space in due course and how we implement the 2030 transition deadline and ensure that voices and insights from the industry are heard every step of the way.”

Dan Caesar, chief executive of campaign group EVUK, said: “The switch to electric vehicles is creating jobs now and this will increase significantly in the immediate future, and open up opportunities for the UK.

“The Zev mandate is world-leading legislation that will put the UK firmly on the map with green tech investors and send a clear signal that the country means business when it comes to the global energy transition.

“Clean air and sustainable employment are surely the legacy we all want, and the existing zero-emission mechanisms are critical.”

Our Zev mandate targets are world-leading. Don’t let the intense lobbying from legacy auto ruin them

Quentin Willson, founder of pro-EV group FairCharge, said: “Ministers should not dilute the UK’s EV ambitions.

“Long-term government policy has made us the second-most successful EV market in Europe – an advantage we should strengthen, not weaken.

“Our Zev mandate targets are world-leading. Don’t let the intense lobbying from legacy auto ruin them.”

SMMT figures show registrations of fully electric new cars across the UK rose by 14.2% during the first 10 months of the year compared with the same period in 2023, with a growth in market share from 16.3% to 18.1%.