Rochdale MP, Tony Lloyd, is calling on the government to take action in removing barriers to electric vehicle (EV) uptake.
Currently there is a discrepancy between VAT on residential off-street EV charging, which is charged at 5%, and VAT on public charging which is charged at 20%.
Tony said, “Increased use of EVs will reduce the dependency we have on expensive and polluting oil.
“We need to increase the supply of electric vehicles in the UK and help make them more affordable, yet there are barriers in the way to making EVs affordable.
”Current proposals only require 22% of new car sales to be Zero Emission Vehicles by 2024, however the Office for Budget Responsibility’s forecasts predict that demand is likely to rise to nearly 40% by 2024.
“By setting ambitious targets for sales, this will ensure enough vehicles are produced to meet expected demand and help us to reach purchase price parity between petrol, diesel and electric vehicles.
“Furthermore, a vast number of households in Rochdale and other towns and cities across the UK do not have access to off-street parking and are likely to pay a higher rate of VAT on EV charging.
“I’m calling on the government to scrap this discrepancy as soon as possible and reduce VAT on public charging to 5%.”
Tony joins over 25 cross-party MPs in signing a Parliamentary motion calling for action now. He has also written to the Transport Secretary with the campaign group, Fair Change, calling for more ambitious targets for Zero Emission Vehicle (ZEV) to stimulate investment, drive down purchase costs and help drive the UK’s EV rollout.
Notes for editors:-
• The full text of the Parliamentary motion, and a full list of signatories, can be found here.
• The full text of Tony’s letter to the Transport Secretary can be found below.
Secretary of State for Transport
Department for Transport
Great Minster House
33 Horseferry Road
London SW1P 4DR
Dear Secretary of State,
I’m writing to ask you to increase the targets in the Zero Emission Vehicle (ZEV) mandate. Demand for EVs is running significantly ahead of supply with sales now 16% of all new car registrations in June. As you know from your own experience, the financial advantages of EVs are considerable – especially with fuel now at almost £2.00 a litre – and the public health benefits are well documented. Nobody is surprised that in a recent FairCharge survey we found that 100% of UK new car buyers would turn their backs on combustion cars once EVs achieve price parity.
However, the supply of electric cars is being limited. The average waiting list for an EV is now running at between four months and one year, and while there are supply chain issues, car makers need to produce more EVs for the UK market to satisfy the burgeoning demand.
Your plans to introduce targets for manufacturers as part of the ZEV mandate could be a key to increase this supply. The current proposals would only require 22% of new car sales to be ZEVs in 2024, despite the Office for Budget Responsibility’s forecasts (based on the latest new car sales) predicting demand is likely to rise to nearly 40% of the market by 2024. Unless your targets are more ambitious, we risk actually slowing the supply of EVs into the UK.
The mandate should also set meaningful targets that do not allow manufacturers to delay compliance. Allowing car makers to prevaricate risks electric cars being diverted to other more established and profitable markets like Norway and Holland. We simply can’t see supplies restricted and EVs continue to be the preserve of middle-class early adopters.
Being bolder with the ZEV mandate will increase the number of electric cars sold in the UK, expand the second-hand market, and help make electric cars more affordable. It will also create employment with the potential for 15,000 new jobs from just one 30 GWh battery factory alone. The UK will need at least three.
We’ve made great progress with almost half a million electric cars on our roads. But now, more than ever, we need to increase the supply of EVs into the UK, help make them more affordable and end our addiction to expensive and polluting oil.
Tony Lloyd MP, et al.