Government "sleepwalking into EV crisis" after budget snub

“Today’s budget is therefore a missed opportunity to deliver fairer tax for a fair transition. Reducing VAT on new EVs, revising vehicle taxation to promote rather than punish going electric and an end to the VAT ‘pavement penalty’ on public charging would have energised the market. 

“With both government and industry having statutory requirements to deliver net-zero, more still needs to be done to help consumers make the switch.”

The spring budget was also expected to bring an answer on the potential extension to the VED exemption of EVs, which will end in 2025, but Hunt said nothing about this. 

Hunt did, however, confirm that the 5p cut in fuel duty will remain for another year. Duty currently sits at 52.95 pence per litre.

He said the duty cut, introduced when fuel prices hit record highs in 2022, would “save the average driver £50 over the next year and bring total savings since the 5p cut was introduced to £250”.

He added: “Lots of families and sole traders depend on their cars. If I did nothing, fuel duty would increase by 13% [from] this month.”

Hunt confirmed this measure was still “temporary” and would again be looked at next year.

This move was described as a “missed opportunity” by Dally, who said the government could have ringfenced “some or all the money that would have come from the fuel duty rise” and invested it “into this country’s seemingly dwindling electric vehicle strategy”. 

Motoring organisation the RAC welcomed it as “good news” but called for more to be done to help drivers.

Head of policy Simon Williams said: “While it’s good news that fuel duty has been kept low, it’s unlikely drivers will be breathing a collective sigh of relief, as we don’t believe they’ve fully benefited from the cut that was introduced just two years ago due to retailers upping margins to cover their ‘increased costs’. This has meant fuel prices have been higher than they would otherwise have been.

“What’s more, despite today’s positive news, it’s still the case that drivers are once again enduring rising prices at the pumps, sparked by the oil price going up. The average cost of a litre is already up by more than 4p since the start of the year.”

Source link

About The Author

Scroll to Top