Protecting a “Difficult” Market: Did Carmakers Paint the UK as an Economic Backwater?

In their bid to secure weaker EV rules, carmakers painted a picture of the UK as an economically difficult and uncompetitive market, a portrayal that critics worry could become a self-fulfilling prophecy.
BMW’s claim that the UK has become a “far more difficult place to produce vehicles” since Brexit was a particularly stark assessment. This narrative, echoed by others who pointed to a “subdued economic backdrop,” framed the UK as a fragile economy that could not withstand ambitious environmental regulation.
While this may have been an effective lobbying tactic, it sends a negative signal to potential international investors. It suggests that major players in the UK’s own manufacturing sector have lost confidence in the country’s economic and regulatory environment.
The danger is that by arguing the UK is too weak for strong green policies, the industry may inadvertently deter the very investment in green technology that the country needs to become a competitive, forward-looking economy. The government’s acceptance of this narrative risks reinforcing a damaging perception of national decline.