The traditional gear stick, that small, mechanical talisman of British motoring, is being quietly stripped out of new car ranges, and according to fresh forecasts it will be all but extinct by the end of the decade. The diesel engine, long the workhorse of the company car park, is heading for the same exit door.

Analysts at Vehicle Data Global (VDG) say the manual gearbox will disappear from mainstream UK showrooms inside the next three years, well ahead of the 2030 ban on the sale of new petrol and diesel vehicles. Their argument is not sentimental; it is, as the report puts it bluntly, “hard economics”. Electric cars almost universally use single-speed automatic transmissions, and as the EV share climbs, manufacturers are increasingly reluctant to carry the research, development, certification and tooling overheads needed to keep manual variants on the price list for a shrinking pool of buyers.

For the UK’s small and medium-sized businesses, many of which still run mixed fleets of combustion and electrified vehicles, the implications are more than nostalgic. The transmission and fuel choices on offer over the next 36 months will reshape how SMEs specify company cars, train drivers, calculate residual values and plan capital expenditure on vans and pool vehicles.

The numbers behind the obituary

A market-wide review earlier this year found that just 23 per cent of new cars on UK forecourts now have a gear stick, down from roughly two-thirds a decade ago. Where buyers still have a genuine choice between manual and automatic on a petrol or diesel model, only 34 per cent opted for the manual in 2025, a sharp fall from 55 per cent as recently as 2019.

Diesel’s slide has been even more dramatic. Fewer than one in 20 new cars registered in 2026 (4.8 per cent) is a diesel, down from one in two just over a decade ago, according to the latest SMMT registration data. The reputational fallout from the 2015 emissions scandal, tightening clean-air zones and the rise of plug-in hybrids and pure EVs have all combined to push diesel out of the mainstream — a shift Business Matters has tracked in detail in its coverage of how British drivers are sending a “clear signal” in support of electric cars as petrol and diesel sales nosedive.

Ben Hermer, operations director at VDG, summed up the manufacturers’ calculus. “The moment is fast approaching when the economics of maintaining a manual transmission option don’t add up, given the R&D, certification and other overheads involved in developing and refining gearboxes, even if there remains some demand in the market,” he said. “Based on current trend data, between 5 and 10 per cent of cars will theoretically still be manual by 2030. But manufacturers will be looking hard at whether maintaining manual gearbox programmes for a shrinking share of the market makes economic sense.”

Analysis by CarGurus shows the squeeze in real time: just 67 of the 292 new models sold by the UK’s top 30 manufacturers are currently offered with a manual option, down from 197 models in 2016.

What it means for SME fleets and company car schemes

For finance directors and operations managers running small fleets, three practical consequences stand out.

First, residual values for manual diesels are likely to soften faster than the wider market as supply of replacement parts thins and used-buyer appetite narrows. Owner-managers approaching a vehicle refresh in 2027 or 2028 should not assume that today’s resale benchmarks will hold.

Second, driver training and recruitment policies will need a refresh. Auto-only licence holders cannot legally drive a manual car, and as Business Matters has previously reported in its business owner’s guide to volatile fleet costs in 2026, grey-fleet and pool-car policies are already a hidden compliance risk for many SMEs. With automatic-only learners now the fastest-growing segment of new drivers, employers will need to widen their definition of an “eligible driver”, or accept a shrinking talent pool.

Third, capital allowances, benefit-in-kind treatment and total-cost-of-ownership models will tilt sharply in favour of electrified vehicles. The 2030 ban is no longer a distant policy threat; it is a 36-month operational deadline that intersects directly with vehicle replacement cycles. SMEs that delay their transition planning risk being forced into a depleted second-hand market for manuals and diesels just as supply dries up.

Learners are already voting with their feet

The driving school sector is a leading indicator. Figures from the Driver and Vehicle Standards Agency, set out in the DVSA Annual Report and Accounts 2024-25, show that of the 1,839,753 practical driving tests taken in 2024/25, some 479,556, 26.1 per cent, were in automatics. That is up from 23.4 per cent the previous year, 19.2 per cent in 2022/23 and a mere 6.9 per cent a decade earlier.

In other words, automatic tests have moved from fewer than one in 14 examinations ten years ago to more than one in four today, and trade body projections suggest the figure could touch a third by 2027.

Despite the popular belief that they are easier, pass rates in automatics remain stubbornly lower than for manuals: 43.9 per cent versus a 48.7 per cent overall average in the last fiscal year. The catch, of course, is that an auto-only licence is a one-way door. Holders are legally barred from manual cars, which can sting when hiring abroad in markets where stick-shift rentals still dominate and automatic surcharges remain steep.

The models still flying the flag

For motorists, and fleet buyers, who still want a third pedal, the choice is narrowing but not yet bare. Dacia leads the field, offering manual transmissions across its entire six-strong combustion range (only the Spring EV is auto-only). Ford, Hyundai, Kia, Skoda and Volkswagen all still field five or six manual options, while Porsche keeps a manual 911 in the catalogue as a halo product. Jaguar, Honda, Lexus, Mercedes-Benz, Mini, Tesla, Land Rover and Volvo no longer offer a single manual variant in the UK.

Even Seat has thinned its line-up, with Ateca production ending in the past month. The direction of travel is unambiguous.

For SME owners weighing their next purchase, the message from VDG, the SMMT data and the DVSA’s own statistics is consistent: the era of the manual diesel, the so-called “motorway mile-muncher” beloved of sales reps under New Labour’s generous tax regime, is closing fast. The businesses that plan now for an auto-only, increasingly electrified fleet will be the ones least exposed when the showroom shutters finally come down on the gear stick.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

NEW YORK — Quantum computing stocks rose sharply on Thursday, May 21, 2026, after the Trump administration announced $2 billion in grants to nine companies in the sector, with the U.S. government set to take equity stakes in return.

The U.S. Department of Commerce is awarding the funding, drawn from the 2022 CHIPS and Science Act. IBM will receive $1 billion, while GlobalFoundries is set to receive $375 million.

Other recipients include D-Wave Quantum, Rigetti Computing and Infleqtion, each expected to receive about $100 million. Additional companies such as Atom Computing, PsiQuantum, Quantinuum and Diraq are also part of the package, with Diraq receiving around $38 million.

The deals include the U.S. government acquiring minority equity stakes in the companies. Commerce Secretary Howard Lutnick described the initiative as a push for a new era of American innovation amid competition with China.

Shares of companies involved rose significantly in premarket and early trading. Infleqtion jumped as much as 24%, while other quantum stocks posted gains between 7% and 25%. IBM and GlobalFoundries also advanced.

The announcement builds on discussions that began in October 2025, when the White House first indicated it might take equity stakes in quantum computing firms. The funding aims to strengthen U.S. leadership in the technology, which holds potential for advances in drug discovery, cryptography, materials science and artificial intelligence.

Quantum computing uses principles of quantum mechanics to perform calculations far beyond the capabilities of traditional computers. The sector has attracted growing investor interest as companies work toward practical, error-corrected systems.

The Trump administration’s move represents one of the largest direct federal investments in the quantum sector to date. Officials view quantum technology as strategically important for national security and economic competitiveness.

IBM, a leader in the field with its Quantum System Two, has been expanding its quantum hardware and cloud services. The company has partnerships with universities and corporations for research and development.

GlobalFoundries, a major semiconductor manufacturer, plays a key role in producing chips that support quantum systems. Other recipients like Rigetti Computing and D-Wave Quantum focus on different technical approaches, including superconducting and annealing systems.

The equity component of the deals allows the government to share in potential upside from commercial success. This structure differs from traditional grants and reflects a more active industrial policy approach.

Analysts have noted increased government support for critical technologies under the current administration. The funding complements earlier initiatives under the CHIPS Act aimed at bolstering domestic semiconductor and advanced technology manufacturing.

Quantum stocks have shown volatility in recent years but gained momentum in 2025 and 2026 amid technological milestones and growing commercial interest. Companies in the sector continue to face technical challenges, including error rates and scalability.

The Department of Commerce did not immediately release the full list of recipients or exact terms beyond the major allocations. Further details are expected in coming days.

Broader market reaction extended to related stocks in semiconductors and technology infrastructure. The announcement comes as global competition in quantum computing intensifies, particularly with China’s own heavy investments in the field.

Industry groups have welcomed the funding as a boost for U.S. innovation. The sector employs researchers, engineers and technicians across multiple states, with clusters in California, New York, Maryland and Colorado.

No official comment was immediately available from all recipient companies beyond initial statements confirming the agreements. IBM and GlobalFoundries acknowledged the funding in separate releases.

The grants are part of a larger strategy to maintain technological superiority in emerging fields. Quantum computing is seen as a foundational technology for the next decade, with applications in optimization, simulation and secure communications.

Trading volume in quantum-related stocks increased significantly following the news. Market participants will monitor how the equity stakes and funding translate into accelerated development timelines.

The development underscores growing bipartisan interest in securing supply chains and technological edges in strategic areas. Previous administrations also supported quantum research through various federal programs.

Further updates on project milestones and commercialization efforts are anticipated as companies deploy the new capital. The sector continues to attract private investment alongside government support.

NEW YORK — Elevra Lithium Limited (NASDAQ: ELVR, ASX: ELV) shares rose 8.95% to $12.18 in midday trading Thursday, May 21, 2026, extending recent gains as the company advances its North American lithium strategy following asset sales and new funding initiatives.

The dual-listed lithium producer and developer, formerly known as Sayona Mining, has refocused operations on North America. It operates North American Lithium (NAL), Canada’s largest producing lithium mine, in joint venture with Piedmont Lithium.

Elevra announced on May 12, 2026, the purchase of Moblan offtake rights and released an updated scoping study for NAL expansion that projects faster growth and lower costs. The company also agreed to sell its interest in the Ewoyaa Lithium Project in Ghana to China’s Zhejiang Huayou Cobalt Co.

On May 13, Elevra raised A$275 million through a placement and convertible notes to fund North American expansion and Moblan work. The company launched a share purchase plan open as of May 18.

The March 2026 quarterly report, released in April, highlighted improved operational performance at NAL and positive cash flow generation. Record revenue figures were reported in prior quarters, with the company delivering strong spodumene production increases.

Elevra’s FY26 half-year results released in February showed revenue of $86 million, up 8% from the prior period. The company generated positive underlying EBITDA of $1 million compared with a prior loss, and operating cash flow of $5 million. Cash balance stood at $81 million at the end of December 2025.

Unit operating costs declined 6% to $814 per dry metric ton. Net profit after tax reached $74 million. Production guidance for FY26 was revised to 180,000-190,000 tons of spodumene concentrate amid operational challenges.

The company’s strategic shift includes divesting non-core African assets to concentrate resources on North American operations. The NAL expansion scoping study outlines accelerated development timelines and cost efficiencies.

Elevra signed a potential spodumene offtake MOU with a North American lithium producer. It continues to pursue partnerships and offtake agreements to secure revenue streams.

Market capitalization stands near $1.39 billion based on recent trading. The stock has shown volatility typical of the lithium sector, influenced by global EV demand, commodity prices and project developments.

Analysts have issued varied ratings. Macquarie downgraded the stock to Hold in mid-May. Other coverage highlights valuation metrics following recent share price movements.

The lithium market faces headwinds from price fluctuations but benefits from long-term demand tied to electric vehicles and energy storage. Elevra positions itself as a key North American supplier amid efforts to reduce reliance on overseas sources.

Headquartered in Brisbane, Australia, Elevra maintains dual listings to access international capital. The name change from Sayona Mining to Elevra Lithium became effective in September 2025.

Recent announcements include changes in substantial holdings and notifications regarding unquoted securities filed on May 18 and 20. The company hosts investor webcasts following quarterly reports.

Production at NAL achieved record quarterly spodumene output in prior periods, with improvements in recovery rates. The operation continues ramp-up efforts under joint-venture management.

Elevra’s capital management includes the recent A$275 million raise, comprising placements, convertible notes and a securities purchase plan. Proceeds target NAL expansion and Moblan project advancement.

The Moblan project in Quebec represents another key asset in the company’s Canadian portfolio. Acquisition of offtake rights strengthens commercial positioning.

Investors monitor lithium price trends, EV adoption rates and government policies supporting critical minerals. Canada Growth Fund has invested in related North American lithium projects.

Elevra reports quarterly activities under ASX and NASDAQ requirements. The March 2026 report advisory preceded detailed operational updates.

Trading volume on May 21 exceeded recent averages amid the price surge. The stock trades within its 52-week range, reflecting sector dynamics and company-specific news flow.

The company emphasizes sustainable practices and community engagement at its operating sites. Expansion plans incorporate environmental considerations aligned with North American regulatory standards.

Broader industry context includes consolidation and strategic realignments among lithium developers. Elevra’s North American focus aligns with supply chain security priorities in the United States and Canada.

No dividends have been declared in recent periods as the company prioritizes growth and debt management. Future capital returns will depend on operational cash flows and market conditions.

Analyst models project revenue growth tied to production ramps and offtake agreements. Valuation discussions center on enterprise value relative to projected output and lithium pricing scenarios.

Elevra continues stakeholder communications through ASX releases, investor presentations and webcasts. The share purchase plan provides existing shareholders participation opportunities in the recent capital raise.

The stock’s performance on May 21 reflects positive sentiment around funding secured for core projects and strategic divestments. Market participants await further updates on expansion timelines and production achievements.

Rachel Reeves has rolled out a package of consumer-facing tax cuts in a bid to put more cash in family pockets and breathe life back into Britain’s battered high streets, with the centrepiece a temporary VAT reduction on summer attractions designed to keep tills ringing through the holidays.

In a statement that drew rare applause from the hospitality lobby, the Chancellor confirmed that VAT on a swathe of family activities will fall from 20 per cent to 5 per cent under a new “Great British Summer Saving Scheme”. The reduced rate will apply to fairs, zoos, museums, cinemas and children’s meals in restaurants, running from the start of the Scottish school holidays on 25 July through to early September.

Reeves also ruled out the long-trailed rise in fuel duty, suspended tariffs on more than 100 supermarket food lines and lifted the tax-free mileage allowance by 10p per mile, backdated to April 2026. Free local bus travel for children aged five to 15 will operate throughout August in England, in what the Treasury framed as a co-ordinated push to ease pressure on households during the school break. Full eligibility criteria for the scheme have been published by the Treasury.

The measures land at a critical moment for the country’s small-business community, particularly the hospitality and leisure operators who have spent the past three years absorbing rising wage bills, energy costs and business rates. As Business Matters has reported, trade bodies have warned of a “tidal wave” of closures unless ministers act, with three pubs and restaurants shutting their doors every day so far this year.

A lifeline for the high street

Michelle Ovens CBE, chief executive and founder of Small Business Britain, welcomed the move as a timely intervention before the all-important summer trading quarter. “It’s encouraging to see the Chancellor’s commitment to a summer of savings with the VAT cut on children’s meals,” she said. “Providing an important boost for small businesses during the summer period, helping to drive footfall and ease pressure on margins at a crucial time of year. As many businesses prepare to enter the most important trading quarter of the year, measures that support both families and local high streets are incredibly welcome.”

Ovens added that the package was “essential in combating the ongoing cost-of-living crisis, particularly during the summer holidays when financial pressures and childcare commitments can intensify without the support schools often provide”.

The Federation of Small Businesses (FSB) echoed the sentiment but with sharper edges. Tina McKenzie, the FSB’s policy chair, said the timing could not be more urgent for an industry running on fumes. “Anything that helps get families out spending this summer is good news for the restaurants, pubs, soft plays and attractions that have spent years fighting rising costs and shrinking margins,” she said. “With 44 per cent of small hospitality firms based on or near the high street, a VAT cut should help put bums on seats and bring life into our town centres this summer.”

McKenzie pointed to a domestic tourism uplift as cash-strapped families switch out of foreign holidays. “Families will make extra purchases, such as drinks and merchandise, which is likely to be the biggest help to small businesses’ bottom lines,” she added.

Confidence in critical condition

The numbers behind the announcement make uncomfortable reading. According to the FSB, 94 per cent of small hospitality firms saw their costs rise in the last three months, with tax cited as one of the biggest drivers by 61 per cent of operators. A further 35 per cent expect to contract over the coming year, a figure that helps explain why this temporary VAT cut, while welcome, is unlikely to satisfy a sector that has long campaigned for a permanent reduction.

Kate Nicholls, chair of UKHospitality, which has lobbied for years for a lower headline rate, said it was “good to see the Government recognise the importance of a lower VAT rate for hospitality as the quickest and simplest way to lower prices and boost consumer confidence”. The trade body has consistently argued that aligning the UK’s rate with European competitors would stimulate jobs and investment well beyond the summer window.

For now, however, ministers have stopped short of that wider reset. The Treasury has costed the scheme at roughly £300 million, a modest sum against the backdrop of the wider Budget arithmetic, but enough, the Chancellor hopes, to keep the lights on in pubs, cafés and family attractions through what one operator described to Business Matters as “make-or-break months”.

The fuel duty freeze and 10p mileage uplift, meanwhile, address a separate but related pressure point. Rising pump prices have been squeezing tradespeople, hauliers and rural firms with no realistic alternative to the van or the car, an issue previously highlighted as a slow-burning crisis for the SME economy.

A summer test

Whether the package delivers will depend on whether smaller operators can pass the VAT saving through to customers quickly and visibly, and whether families respond. “A strong summer could be the difference between staying afloat and shutting up shop for some businesses,” McKenzie warned.

For the Chancellor, the political calculation is straightforward: a summer of cheaper days out, full coach parks and busy seaside arcades is a far easier sell on the doorstep than another quarter of grim closure headlines. For Britain’s small businesses, it is a chance, perhaps the last one this year, to turn footfall into cash flow.

As McKenzie put it, in a line that doubles as a plea: “As people plan summer days out, we’d urge them to back the small local pubs, cafés, attractions and hospitality venues that make our communities special.”

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.