Electric car grants may return ‘when it works best’

GB News guests debate using electric cars

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A recent report from the RAC found that the number of drivers planning to change their vehicle in the near future has declined steadily in the aftermath of the pandemic. Fewer drivers than ever plan to opt for a conventionally fuelled vehicle as their next car, yet a greater proportion than ever expect to get an electric car. 

As a result, there have been calls for the Government to reinstate the Plug-in Car Grant, just months after it was scraped to “re-focus” funds on EV charging infrastructure.

Experts argue that it would help the general public afford electric cars in the run-up to the 2030 ban on sales of new petrol and diesel vehicles.

Casper Rasmussen, CEO of Monta, commented on the available EV grants and how they are helping drivers make the transition to electric.

Speaking to Express.co.uk, he said: “The Government is just trying to put different packages out. 

“You see this in Germany where there are big incentives just on the EVs themselves, where you get a tax deduction from it and also a CO2 certificate. 

“The different countries will introduce different incentives when they believe it will work best. 

“There will be phases like there is now in the UK where there is nothing for the domestic chargers or vehicles.

“Maybe the sales will go down for now but will increase again when they solve the issues.”

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The Government announced in June it would be scrapping the Plug-in Car Grant to focus funding on the development of the public electric car charging network. 

The EV grant allowed drivers to apply for £1,500 in funding to go towards an electric vehicle under £30,000 to boost the uptake of the vehicle type.

In 2011, there were less than 1,000 EVs sold but with the EV incentives, a flourishing market saw almost 100,000 electric vehicles sold in the first five months of 2022 alone.

By cutting the grant, the Government allocated around £300million to support the uptake of electric vans, taxis and motorcycles to boost drive to net zero.

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The current grants range from a maximum of £500 for an electric motorcycle, up to £25,000 for a large truck heavier than 12 tonnes.

Mr Rasmussen continued, saying: “In Denmark, we are known for this 150 percent tax on top of ICE cars, but it’s zero percent for EVs. 

“They tried year after year to increase tax on EVs. They said one year, we will increase it to 50 percent and increase it every year. 

“Every time they tried this, the EV sales are dropping and they figure out that they can’t do that and after three months they roll it back. 

“They are always working in ways for EVs to eventually be taxed at 150 percent, but that is changing all the time.”

The Government also amended the terms of the successful EV Homecharge Scheme (EVHS) in April.

This allowed anyone in the UK with an electric car to apply for a grant of up to £350 to put towards the cost of installing a wallbox charger.

Whilst it is still active, the criteria changed meaning homeowners living in bungalows and detached, semi-detached or terraced houses will no longer be able to apply for the grant.

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