The government has confirmed that it will consider all policy options - including incentives - to address potential market failures in the move to zero-emission vehicles.
The comments form part of the Government’s response to recommendations put forward by the Environment and Climate Change Committee. Toby Poston, BVRLA Corporate Affairs Director, appeared before the Committee on 6 September 2023 to formally represent member views.
The Government has responded to the Committee’s 56 recommendations covering EV issues including public messaging about EVs, acquiring an EV, charging and battery recycling. Full details can be found in the summary response document.
Within the response, the Government:
- States that the transition to zero-emission vehicles is “a crucial step in ensuring the UK meets is climate change obligations and 2050 net zero target”.
- Agrees with the need for a public messaging communication strategy in collaboration with industry and consumer organisations
- Acknowledges that salary sacrifice and benefit-in-kind incentives have been successful in making the transition to electric vehicles affordable
- Agreed that there must be enough skilled mechanics trained to maintain EVs.
Among many cases where the recommendations in the report have been accepted, the government disagreed that additional new car grants should be introduced. It also disagreed that VAT should be equalised between public and private charging.
The Government’s commitment to looking at policy options to address potential failure in the used BEV market is positive and confirms the BVRLA view that this is the right time for an intervention. The acknowledgement of the success of salary sacrifice and benefit-in-kind should support the association’s call for more foresight on future rates.
Lords Environment and Climate Change Committee Report 2024 (UK Parliament website).
