Electric Vehicles

Department for Business, Energy and Industrial Strategy written question – answered on 26th July 2021.

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Photo of Stuart Anderson Stuart Anderson Conservative, Wolverhampton South West

To ask the Secretary of State for Business, Energy and Industrial Strategy, what incentives are being put in place to encourage the transition to electric vehicles.

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), The Parliamentary Under-Secretary for Health and Social Care

The Government had already committed £1.5 billion to support the early market and remove barriers to ZEV ownership. Alongside the new phase out dates for new petrol and diesel cars and vans, we pledged a further £2.8 billion package of measures to support industry and consumers to make the switch to cleaner vehicles. This includes up to £1 billion to support the electrification of UK vehicles and their supply chains.

The Government will provide £1.3 billion to support the continued roll-out of chargepoint infrastructure at homes, workplaces, residential streets and across the wider roads network, to provide motorists with confidence to purchase an EV. Government and industry have already supported the installation of nearly 25,000 public charging devices. This includes more than 4,500 rapid devices – one of the largest networks in Europe.

Government grants for plug in vehicles continue to be available to help reduce the up-front purchase price of electric vehicles, with total money committed at £582 million for cars, vans, motorcycles and taxis to 2022/23.

The March 2020 Budget included the extension of favourable benefit in kind tax rates for zero emission vehicles out to 2025: company car tax is 1% in 2021/22 and 2% in 2022/23 through to 2024/25; and all zero emission cars are exempt from vehicle excise duty (VED).

Local Authorities may also provide additional incentives such as free parking and exemption from the congestion charge.

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