Electric Vehicles: Grants

Department for Transport written question – answered at on 27 June 2022.

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Photo of Baroness Randerson Baroness Randerson Liberal Democrat Lords Spokesperson (Transport)

To ask Her Majesty's Government what consultation they undertook with the automotive sector prior to their announcement that they will cease to provide grants for purchases of some categories of electric vehicles; and what estimate they have made of the impact that the loss of these grants will have on total electric vehicle sales.

Photo of Baroness Vere of Norbiton Baroness Vere of Norbiton Parliamentary Under-Secretary (Department for Transport)

We have been clear since 2018 that the plug-in grants will eventually end and that we keep all grants under review to ensure the best value for taxpayer’s money. Providing even a short notice period ahead of the grant rates in March 2020 led to a very large spike in orders and a larger number of these were subsequently cancelled. A similar spike this time around would not have been affordable within current budgets. Government has a responsibility to manage the grant budget and to deliver value for money for taxpayers and was therefore unable to formally consult with the automotive sector ahead of the grant changes, however we did discuss the process of halting the grant with a number of stakeholders.

While the Government has slowly reduced the grant over time, the sale of electric vehicles has soared.

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