Electric car owners have been left behind in the latest Government Budget after the Chancellor failed to mention any changes for EVs, despite massive demands from the industry and drivers to cut costs.
In the latest Spring Budget, the Chancellor unveiled cuts to National Insurance, non-dom tax and fuel duty, but did not include any details to support electric vehicles across the UK.
Drivers and leading industry experts have repeatedly called on the Government to introduce new measures to help existing electric vehicle owners and support drivers who are looking to make the transition to a zero emission vehicle.
There had been calls for VAT cuts on chargers, the reintroduction of incentives for drivers or even greater funding for EV chargers around the UK.
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Jeremy Hunt failed to announce any boost to EV drivers
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Reacting to the Budget, RAC head of policy Simon Williams said: “The Chancellor has once again missed a massive opportunity to correct a bizarre tax anomaly and level the playing field when it comes to making running electric vehicles more affordable.
“As things stand, anyone without a driveway is penalised by having to pay four times the rate of VAT when they charge their cars at a public charger, compared to anyone who is fortunate enough to charge up at home.
“There is a huge strength of feeling about this issue, with charging networks having committed to passing the savings on in full to drivers – so it’s enormously frustrating that the Chancellor has chosen to look the other way on this important issue.”
FairCharge, a leading EV campaign group, has highlighted how the current tax rules date back to 1994 and were written long before there were any electric cars on the road.
Williams added: “The absence of any announcements today to support the transition to EVs is enormously disappointing and risks hampering the speed at which everyone can enjoy the benefits of cleaner driving.”
The number of electric vehicle chargers around the UK has also grown dramatically in recent months after fears the rollout had stalled.
According to Zapmap data, at the end of February 2024, there were 57,290 charging devices around the UK – an impressive rise of almost 2,000 extra chargers compared to January.
It also represents a 47 per cent increase in the number of chargers up and down the country since February last year.
Experts penned an open letter to the Chancellor earlier this month, demanding that he slash the rate of VAT on public chargers from 20 per cent to five per cent to match the rate applied to home chargers.
James Taylor, Managing Director of Vauxhall, commented: “Today’s Spring Budget has not delivered the acceleration needed to stop the UK’s transition to electric vehicles from stalling.
“If we are to meet the rightly ambitious targets laid out in the Government’s Zero Emission Vehicle mandate (80% of all cars sold to be electric by 2030) then there needs to be incentives for private car buyers to make the switch to electric as there are in the majority of European nations.”
The AA also criticised the Government for failing to address steps to improve uptake of electric vehicles in the Budget.
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Public EV chargers attract a VAT rate of 20 per cent, compared to five per cent for home chargers
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Jack Cousens, AA spokesperson, said: “Not equalising the VAT on public charging of EVs with domestic charging is a missed opportunity to encourage more car owners to switch to an EV and contribute towards the UK goal of net zero.”
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