The government plans to announce an additional £1.3 billion for boosting electric vehicle (EV) use in the upcoming Budget. Since the launch of the Electric Car Grant scheme in July, which offers discounts on eligible vehicles, around 35,000 people have switched to EVs. However, there’s early evidence suggesting that this scheme isn’t attracting new buyers.
Part of the new funding will go toward expanding charging infrastructure, especially for those without driveways. This has become essential as all new cars must be electric or hybrid by 2030, marking the end of sales for petrol and diesel vehicles.
A recent study by New AutoMotive revealed that EVs under this grant made up 23.8% of new registrations in September. This is the same percentage as before the scheme started, indicating that the initiative hasn’t significantly opened the market to new consumers. David Farrar, their policy manager, said it’s unclear if the scheme is encouraging buyers to choose EVs they wouldn’t have considered otherwise.
The Budget may also include £200 million to hasten the rollout of chargepoints across the UK. Currently, there are nearly 87,000 charging points at about 44,000 locations, including supermarket car parks. The government aims to create more chargepoints to ensure everyone, especially those without off-street parking, can access reliable charging options.
However, there are concerns about a potential new tax for EV owners. By 2028, a pay-per-mile charge could be introduced as a way to balance the tax system for all drivers. A government spokesperson explained that while fuel duty applies to petrol and diesel users, electric vehicles currently lack an equivalent tax.
Debate surrounding these plans is heating up. Critics, including Richard Holden, the shadow transport secretary, argue that providing funds for EV subsidies while families face higher taxes is irresponsible. The anticipation of increased taxes comes in the context of efforts to reduce NHS waiting lists, manage national debt, and address the cost of living crisis.
Public opinion on EV incentives is mixed. While some see them as necessary for shifting to greener transport, others are concerned about the fairness of funding initiatives when many are struggling financially. The upcoming Budget promises to address these pressing issues, but it remains to be seen how it will balance environmental goals with economic realities.
For more in-depth insights, you can check New Automotive’s study and updates on charging initiatives at Zapmap.
