UK Government Stands Firm Against Reinstating EV Grants

In a detailed review conducted by the House of Lords regarding strategies to boost electric vehicle (EV) adoption, several key recommendations were made to the UK government, including the reinstatement of the plug-in car grant (PiCG).

The report entitled "EV Strategy: Rapid Recharge Needed" also suggested reducing VAT discrepancies between public and home charging stations and introducing a range of fiscal incentives to make electric vehicles more appealing to consumers.

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However, the government's response to this report has been underwhelming for proponents of faster EV adoption. It rejected the idea of bringing back the previously discontinued PiCG, which had initially provided significant purchase price reductions for new EV buyers since its introduction in 2011. The grant, which decreased from £5,000 per vehicle to £1,500 before its cessation in 2022, was deemed less impactful compared to other existing incentives like company car tax benefits, despite the early boost it provided to the EV market.

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The government also declined to align VAT rates for public charging stations with those of domestic ones, citing fiscal pressures. Other suggestions from the report, such as equalizing the market for used EVs and improving signage and real-time information for public charging infrastructure, were similarly dismissed. The government justified its stance by pointing to a decrease in the price premium for EVs relative to internal combustion engine vehicles and improvements in battery technology that are expected to bring costs down further.

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Critics, including Baroness Parminter who chaired the inquiry, expressed disappointment, emphasising the missed opportunity to enhance air quality and accelerate the UK's progress toward its environmental targets. Despite these setbacks, the government acknowledged some of the report's less contentious suggestions and committed to continuing discussions on how to overcome market barriers for used EVs and other long-term strategies for sustainable transportation.

You can read the original article here: Car Dealer Magazine



source http://autoengage.co.uk/home-page-9252-9795-4532/b/uk-government-stands-firm-against-reinstating-ev-grants

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