If it wins the next election, Labour says it will reinstate the 2030 ban on the sale of new petrol and diesel cars and vans.

After the Government announced it would delay the ban by five years, until 2035, shadow environment secretary Steve Reed said that a Labour Government would keep the 2030 phase out date, because “that's what businesses have been investing for” and how the country can meet net zero.

He told Sky News: “Sunak is stuck in the past here, he wants to keep household bills high, and he wants to stop the investment for the new jobs that would pay the good, secure wages of the future.”

Defending the change, Sunak explained that the Government was "working hard" to make the UK a world leader in electric vehicles (EVs). 

However, he said: “Small businesses are worried about the practicalities, and we’ve got further to go to get the charging infrastructure truly nationwide.”

He added: “We need to strengthen our own auto industry so we aren’t reliant on heavily subsidised carbon intensive imports from countries like China.”

The Labour party’s net zero spokesman, Ed Miliband, said: “Delaying the phase out of petrol and diesel cars will add billions in costs to families and damage investor confidence in the UK, as we have seen from the furious business reaction today.

“This is a Prime Minister who simply doesn't understand and cannot grasp for Britain the opportunities for jobs and our economy of driving forward with action on clean energy.”

The delay of five years brings the UK in line with the EU's plans to ban the sale of new fossil fuel cars.

The EU Parliament voted to back a European Commission proposal for a ban on the sale of new petrol and diesel cars from 2035, in June. 

The EU's plans were unveiled last year and sought a reduction to zero CO2 emissions from new cars sold in the bloc by 2035.

MEPs voted to require carmakers to cut their average fleet emissions by 15% in 2025, compared to 2021, by 55% in 2030, and by 100% in 2035.

Maria Connolly, partner and head of future energy at law firm TLT, said: “It’s inevitable that some measures, such as the deferment of the ban on petrol and diesel cars to 2035, will raise some questions and impact public opinion.

"The initiatives announced this week to help facilitate key strategic priorities for these sectors will be key to ensure momentum is not lost and projects attract the level of investment needed to scale development."

She added: “The coming months will be critical in determining the impact of the measures.

"The hope will be that the private and public sector will continue to collaborate under a strong policy regime and continue to build on the positive progress which has already been made.”