[StEVG]

1.245 Consumer incentives support the development of markets for new transport technology. The government is considering the long-term future of incentives for zero emission vehicles alongside the 2040 phase-out date consultation. Until then, the government will provide
£403 million for the Plug-in Car Grant, extending it to 2022-23. Recognising that the market for other ultra-low emission vehicles is still very small, the government will also
provide £129.5 million to extend the Plug-in Grants for vans, taxis and motorcycles to 2022-23. In addition, the Budget announces the exemption of zero emission cars from the Vehicle Excise Duty (VED) ‘expensive car supplement’ and the publication
of a call for evidence on VED, which will include how it can be further used to reduce vehicle emissions. (35, 44)
Sounds like good news

 

[AnotherJoe]

AIUI plug in grant reduced from £3500 to £3,000 with immediate effect

 

[StEVG]

AIUI plug in grant reduced from £3500 to £3,000 with immediate effect

Yes I hear that is the case - but at least it has not gone completely.

 

[Kev86]

Wow, so Tesla's are no longer going to be charged VED...

 

[BTC]

Wow, so Tesla's are no longer going to be charged VED...

True but offset against the removal of the £3k plug in grant on anything other than the base model 3

 

[ASM]

Personally, I would have liked to see the plug in car grant removed completely and replaced by a reduced VAT rate on zero emission vehicles. I would have also liked a statement about a future policy measure being to increase the VAT rate on non zero emission vehicles with banding based on how polluting the vehicle was.

This would have sent a clear signal on a commitment to lower emissions from private vehicles and would help close the gap on the upfront price between petrol/diesel and electric cars.

However, I expect we can’t change VAT rules until we fully leave the EU in 2021...

 

[WonkoTheSaneUK]

True but offset against the removal of the £3k plug in grant on anything other than the base model 3

The grant is removed at £50k, not £40k. I believe this only affects the LR+ & P.

 

[DragonQ]

The grant is removed at £50k, not £40k. I believe this only affects the LR+ & P.

Yep the only beneficiary overall is cars between £40k and £50k, roughly. Seems a bit weird.

 

[StEVG]

Personally, I would have liked to see the plug in car grant removed completely and replaced by a reduced VAT rate on zero emission vehicles. I would have also liked a statement about a future policy measure being to increase the VAT rate on non zero emission vehicles with banding based on how polluting the vehicle was.

This would have sent a clear signal on a commitment to lower emissions from private vehicles and would help close the gap on the upfront price between petrol/diesel and electric cars.

However, I expect we can’t change VAT rules until we fully leave the EU in 2021...

As I understand it there is a consultation underway. Governments can’t start punishing car buyers when there is a lack of supply of affordable EVs. The grant helps all EV buyers and the changes to luxury car tax helps a bit but does not end up creating yet more subsidies for the rich. My argument being if someone can afford to pay over £50k for a car then they can afford to pay extra vehicle tax. The £40k - £50k was a bit of a problem as in order to make a profit some fairly ordinary cars (Volvo, Ford etc) were priced at just over £40k.
I am sure the Grant will continue to fall in line with increased sales of EV (spreading a smaller sum across a larger number of buyers).