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To ask Her Majesty’s Government whether they have a target for the proportion of new motor vehicles that will be electrically powered by (1) 2020, and (2) 2025; what investments they are making to ensure that a high proportion of those vehicles are manufactured in the UK; and what incentives, if any, they plan to introduce for such vehicles, such as through reducing motor vehicle tax and congestion charges.
The Government has a commitment that almost all cars and vans will be zero emission by 2050. This means all new cars should be zero emission by 2040. We have not set interim targets, but market penetration of ultra low emission vehicles (ULEVs) has doubled in the last year to nearly 2% of new vehicle sales.
We will invest over £600 million during this Parliament to support the uptake and manufacture of ULEVs in the UK - including over £400m for the Plug in Car Grant that offers up to £4,500 off the price of eligible cars. ULEVs also benefit from favourable vehicle excise duty, company car tax, and enhanced capital allowances. They are exempt from Transport for London’s congestion charge and can attract other local benefits. The £40m Go Ultra Low cities scheme is supporting a range of local measure such as free parking and use of bus lanes that are designed to drive take up of ULEVs. £82m support was provided during the period 2010 to 2015 for industry-led collaborative research and development, with a similar programme of support underway for the period 2015-20. In addition the Government and industry are investing around £1bn over 10 years in the Advanced Propulsion Centre to develop, commercialise and enable the manufacture of advanced propulsion technologies in the UK.