Vehicles: Purchase Price and Running Costs

Lord Patel Excerpts

Monday 24th October 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am very happy to outline what government policy is. As the noble Baroness will know, and as is always the case when taxes are referred to, all taxes are kept under review. It should be stressed that the reduced VAT on domestic supply reduces bills for households by £5 billion a year. Most people do not charge their electric vehicles exclusively at public charge points. However, I accept that that discrepancy exists and, as I said, we keep taxes under review.

[Lord Patel (CB)]

My Lords, does the Minister believe that the UK strategy on battery production is still viable, particularly given the recent media reports related to Britishvolt and the decision to move the production of electric Minis to China from Oxford? Does that show a loss of confidence in the strategy?

[Baroness Vere of Norbiton (Con)]

I do not think it is a loss of confidence in the strategy. The Government’s intention is that the UK remains at the forefront of EV manufacture, innovation and batteries; that is why we have the Faraday fund and the automotive transformation fund. All these elements are really important, but I accept that some companies will come into the market, and some will leave. There will be some flux, but at the moment, we are not concerned.