https://www-bbc-co-uk.cdn.ampproject.or ... 20%251%24s
Backlash grows against cut to electric car grants
The Department for Transport will reduce the grant from £3,000 to £2,500 and restrict it to cars under £35,000. . . .
The government said that higher-priced vehicles are typically bought by drivers who can afford to switch to electric vehicles without a subsidy.
It said the changes will allow funding for the grant to go further.
Transport minister Rachel Maclean said: "We want as many people as possible to be able to make the switch to electric vehicles."
"The increasing choice of new vehicles, growing demand from customers, and rapidly rising number of chargepoints means that while the level of funding remains as high as ever, given soaring demand, we are re-focusing our vehicle grants on the more affordable zero emission vehicles."
The government will also alter how it calculates the plug-in van grant, and change the eligibility for the grant to vehicles that are able to travel for 60 miles without any emissions. . . .
With the government now planning to ban the sale of new non-hybrid petrol and diesel cars from 2030, it seems to be relying less on incentives and more on compulsion to bring about change.
Less carrot and more stick.
But the industry believes this approach is wrong and that reducing the grant threatens to choke off the growth in electric car use, at a time when many other countries are offering much bigger subsidies.
Since 2018, the government has been narrowing the scope of the grant, bringing the level down in stages from £5,000 and tightening the eligibility criteria.
It said in 2018 that it wanted to gradually get rid of the grants. In March 2020, it extended the grant schemes for three years with £582m funding. . . .
A related story via GCR:
https://www.greencarreports.com/news/11 ... -in-the-uk
Report: Tesla lobbied for higher taxes on gas and diesel vehicles in the UK
Tesla lobbied the United Kingdom government to raise taxes on gasoline and diesel cars in order to fund higher subsidies for electric cars, The Guardian reported Tuesday.
The automaker proposed both increased fuel taxes on gasoline and diesel, as well as a charge on internal-combustion car purchases, the paper reported, citing documents submitted to the government.
"Supporting zero-emissions vehicle uptake via mechanisms to make new fossil-fueled cars pay for the damage they cause is entirely reasonable and logical," Tesla wrote in the documents, dated last July.
Tesla said £3,000 (about $4,200 at the time of writing) grants for electric cars would be "revenue neutral," provided the government also brought in £49 ($68) per gasoline and diesel car sold in the U.K., based on 2019 sales figures. That would have to rise to £750 ($1,050) per gasoline and diesel car once EVs reached 20% market share, Tesla said.
The automaker also argued for a zero-emission vehicle mandate similar to what's already in place in its home state of California, the report said. Both the UK and California are moving to end sales of new internal-combustion vehicles by 2035. . . .