Jeremy Hunt’s Autumn Statement has been criticised by motoring experts over its silence on help for the electric car market.
The Chancellor confirmed investment into “strategic manufacturing sectors” with a £2billion boost for zero emission projects. Mr Hunt claimed his concept had been “warmly welcomed” by manufacturers Nissan and Toyota in an apparent boost to the industry.
The Government has also pledged to look at unnecessary planning constraints by accelerating the expansion of electric car charging infrastructure.
However, Thom Groot, co-founder and CEO of The Electric Car Scheme wanted Mr Hunt to go further and axe VAT rules which unfairly charge drivers from different areas.
Under current rules, motorists pay 20 percent VAT while charging on the roadside compared to just five percent, favouring those in rural areas where off-street parking is more popular.
He said: “It’s always good to see the UK putting investment behind the domestic battery industry, but the truth is that we will never get to mass adoption of electric cars without making them far more affordable.
“This Autumn Statement has been a missed opportunity for the Government to make driving an electric car far cheaper, something it could have done for very little cost.
“For example, ending the ‘pavement tax’ would cost an estimated £14million a year – a rounding error in a Government budget and less than one percent of the money the Government spent keeping petrol taxes frozen earlier this year.
“Support schemes to help lower-income households purchase EVs directly would be more expensive, but would greatly help the country kick its addiction to fossil fuels.”
Just days ago, the ‘Batteries for electric vehicles’ report published by a cross-party committee of MPs demanded more action.
The study claimed the nation is facing a huge ‘gigafactory gap’, with less battery production than needed.
The MPs warn this could see automotive production in the UK decline and put hundreds of thousands of associated jobs at risk.
However, the Government is due to publish an advanced manufacturing plan and a new strategy for batteries this week which could address concerns.
James Lett, Technical Editor at Autodata was also frustrated at the lack of details offered by the Chancellor.
He explained: “Like many in the industry, we had high hopes that the Autumn Statement would recognise the critical investment and support needed in the transition to EVs.
“The expensive tools and widening skills gap to repair EVs is alarming, and without government support, garages and auto technicians are being left behind in the electric revolution.
“Whilst the ban on combustion engine vehicles has been extended to 2035, thousands of EVs are already on the roads and this will grow exponentially as manufacturers continue to pump an ever-increasing number of EVs into the market.”
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