• UK: Plug-in car grant under threat
    4 replies, posted
Thousands of pounds will be added to the price of some electric and hybrid vehicles as one of the government’s main green initiatives falls victim to cuts, the Observer can reveal. The Treasury is being warned that emergency funds will be needed to avoid an imminent cut in the subsidies given to people buying plug-in cars, which some fear will dent Britain’s green credentials. The government announced last year that it would ban all new petrol and diesel cars and vans from 2040 to reduce the rising levels of nitrogen oxide. It followed a similar commitment in France and formed part of the government’s green air plan. Consumers are given a discount of up to £4,500 when they buy a green vehicle that qualifies under the “plug-in grant” scheme for low-emission vehicles. However, ministers have warned the Treasury that the tight budget for the scheme means large cuts will have to be made. Under current proposals, the maximum grant would fall to £3,500, while the grant of up to £2,500 for hybrid plug-in vehicles would be abolished altogether. A cap is also being considered, which would mean only cars worth up to £60,000 would be eligible for the scheme. ... Business department insiders believe that the cuts could be reversed with a relatively small amount of money. The current budgets for the plug-in grant scheme are £124m for 2018-19 and £96m in 2019-20. The dispute comes just days after Theresa May used her Tory party conference speech to claim “austerity is over” and that “there are better days ahead”. ... The Treasury declined to comment. A Department for Transport spokesperson said: “The Road to Zero Strategy sets out a clear path for the country to be a world leader in the clean transport revolution, including continuing to ensure the tax system incentivises the purchase of the cleanest vehicles. “We have already supported the purchase of more than 150,000 ultra-low-emission vehicles and offer a range of infrastructure incentives as part of our nearly £1.5bn investment to support the transition to zero-emission vehicles. We will continue the plug-in grant until at least 2020, and keep the rates under constant review.” https://www.theguardian.com/environment/2018/oct/07/electric-car-prices-to-soar-low-emission-vehicles--subsidies-philip-hammond-budget
It's all part of the plan to halve ICE cars by 2030 and ban them by 2040.
A cap is also being considered, which would mean only cars worth up to £60,000 would be eligible for the scheme. Not sure why this was bolded honestly, these grants shouldn't be available for luxury EVs.
I bolded the whole paragraph just to highlight the proposals. I don't disagree, I think a £60,000 cap is more than reasonable. However I also think an ICE costing that much should cost more than it's EV counterpart, but it shouldn't be implemented as an incentive on the EV side. I also don't mind hybrids not getting the grant, but I think BEVs worth less than 60,000 should still get £4,500.
UPDATE: It's confirmed now, PHEVs are getting the axe. The rate for BEVs is also being reduced to £3,500 from £4,500 from 9th November. Though it looks like the £60,000 cap isn't coming in to play. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/748072/olev-picg-transition-letter.pdf
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