The government is anticipated to announce an additional £1.3 billion in funding for a scheme promoting electric vehicle (EV) usage during next week’s Budget. This funding is part of the Electric Car Grant scheme, which was launched in July to encourage a transition towards zero emission vehicles. According to government data, the scheme has assisted 35,000 individuals in switching to EVs.
Initial research, however, indicates that the program may not have successfully attracted new buyers to the market. The Budget is also expected to allocate funds for the expansion of charging infrastructure and initiate a consultation focused on providing charging solutions for those without driveways.
A ban on the sale of new petrol and diesel cars will take effect in 2030, necessitating that all new vehicles be either electric or hybrid. The Electric Car Grant scheme currently offers a discount of up to £3,750 for eligible vehicles, and was initially funded with £650 million. A study from New AutoMotive found that EVs participating in the scheme accounted for 23.8% of new registrations in September, which is consistent with their market share prior to the scheme’s announcement.
The upcoming Budget may also propose an additional £200 million to accelerate the rollout of chargepoints across the UK. Data from Zapmap indicates nearly 87,000 charging points available at approximately 44,000 locations, including supermarkets and lampposts. The government expressed that this new funding would facilitate the creation of additional chargepoints and enhance local charging infrastructures.
Concerns have been raised about a potential pay-per-mile tax for EV owners, likely to be introduced in the Budget from 2028. A government spokesperson noted the absence of a fuel duty equivalent for electric vehicles and emphasized the desire for a fair tax system for all drivers. There is pressure on Chancellor Rachel Reeves to avoid increasing taxes, with some campaigners delivering petitions against tax hikes to government officials.
Source: https://www.bbc.com/news/articles/c39pk873wlwo?at_medium=RSS&at_campaign=rss