£1.3bn boost for EV scheme expected in Budget
The Government is expected to announce an extra £1.3bn in funding for a scheme to encourage the use of electric vehicles (EVs) in next week’s Budget.
The Electric Car Grant program launched in July as part of the transition to zero-emission vehicles. The government says it has helped 35,000 people switch to electric vehicles.
But early research shows there is little indication that the program is attracting entirely new buyers.
Money will also be given to create more charging points and advice will be provided on helping people without a driveway charge their cars.
It’s also possible that electric vehicle owners could face a new tax in the form of a per-kilometre charge elsewhere in Wednesday’s Budget.
From 2030, when the ban on the sale of new petrol and diesel cars comes into force, all new cars will have to be electric or hybrid.
The Electric Car Grant scheme, which offers discounts of up to £3,750 on eligible vehicles, has been launched with initial funding of £650 million.
New AutoMotive, a not-for-profit organization supporting the UK’s transition to electric vehicles, has recently been established. to work He said the plan does not yet expand the electric vehicle market.
New Automotive said EVs under the scheme accounted for 23.8% of new registrations in September, the same figure as their share before the Electric Car Grant was announced.
“It’s not yet clear whether it encourages consumers to buy cars they wouldn’t buy anyway,” David Farrar, New AutoMotive’s policy director, said at the time.
The Budget is also expected to announce a further £200 million to accelerate the rollout of charging points across the UK.
Data: Zap map It shows almost 87,000 spots in around 44,000 locations across the UK. These include places such as supermarket car parks and lamppost chargers.
“The proposed funding will support the creation of thousands of charging points and provide extra resources for local authorities to strengthen charging infrastructure on local streets, making it easier for everyone, including those without off-street parking, to access reliable charging,” the government said.
He added that Chancellor Rachel Reeves is “expected to publish a consultation paper on Permitted Development Rights to make it easier and cheaper for people without driveways to charge”.
However, it is also possible that electric vehicle owners will face a new tax in the form of a per kilometer payment fee in the budget starting from 2028.
A government spokesman told the BBC earlier this month: “Fuel duty covers petrol and diesel but there is no equivalent for electric vehicles. We want a fairer system for all drivers.”
Campaigners are preparing to submit a petition to Downing Street early next week calling for long-frozen fuel duty not to be increased, while Reeves is being urged not to increase taxes on motorists generally.
Richard Holden, the shadow transport secretary, said it was “madness” to “hand out £1.5bn of EV subsidies while hard-working taxpayers hang out to dry”.
“Ordinary families face rising taxes and rising inflation under Labor, but the Government’s priority is to hand out discounts on new electric cars,” the Conservative MP said.
Reeves is expected to increase some taxes in the Budget after saying he plans to cut NHS waiting lists, the national debt and the cost of living.
