Buyers set for price shock over electric cars as government grants face cut
A subsidy of up to £4,500 is currently available but Treasury has been warned of cuts to the scheme because of tight budget
People could soon be paying thousands more for electric cars as a result of government budget cuts, it has been revealed.
A report by The Observer says grants towards low-emission vehicles could be reduced – and even axed altogether – if the Treasury is unable to secure emergency funding to make up the difference for the plug-in scheme.
Currently, the government contributes £4,500 towards buying a new car that emits less than 50g/km of CO2 and can cover 70 miles on electric power alone, or £2,500 for those under the same emissions threshold but only capable of delivering up to 10 miles of emissions-free driving.
Should cuts affect the grants, it’s reported that the £4,500 subsidy would drop to £3,500, with the £2,500 incentive axed entirely. The newspaper also says a £60,000 price limit might be imposed, meaning people wanting to buy a Jaguar I-Pace or Tesla Model S or X would no longer be eligible for the scheme.
Cutting the grants could have a negative effect on the momentum of electric vehicle adoption in the UK. September saw a 23.2 per cent increase over 2017 in year-to-date sales of cars eligible for the plug-in grant, with 40,410 registered.
Last year, the government announced plans for sales of new pure petrol- and diesel-powered vehicles to be banned by 2040, although hybrid vehicles will still be allowed on the market, while last month Theresa May said £106m would be ploughed into zero-emission vehicles research and development to enable the UK to lead the sector.
