Following the unprecedented demand of electric vehicles, the UK Government has decided that the UK taxpayers will not longer foot the bill for electric vehicles over £35,000. In addition, the EV Grant will be reduced from £3,000 to £2,500. This news comes as surprise to many as the UK had been leading the way on electric vehicles.
This follows three times the number of pure electric vehicles being registered last year compared to the previous 12 months. This will mean Tesla and higher specification VW ID3 and Kia Niro models will now be over £3,000 more expensive.
Data from the National Audit office confirms the cost of this scheme amongst other UK government incentives has cost the UK taxpayer over £1 billion pounds so far. The net result has seen zero emission vehicles remaining on average £13,000 more expensive than conventional cars with EV’s still making up just 0.5% of cars on UK roads.
The combined CO2 emissions of cars on UK roads has fallen by just one percent over the past decade This is despite the governments ambitions to significantly reduce CO2 emissions. The government is blaming this on the popularity of SUV’s and the lack of affordable EV vehicles on the UK market.
The chancellor had recently held fuel duty on petrol and diesel vehicles which surprised many in the industry, but this news has caused concern across many and highlights we are some distance from achieving a zero-emission centric culture on UK roads anytime soon. The 2030 EV target now seems to be much tougher to achieve without clear clarity and support from the government.