Electric Vehicles: Infrastructure

Debate between Wera Hobhouse and Steve Brine

Wednesday 22nd February 2023 Westminster Hall

[Steve Brine]

I agree with that point. I would expect the hon. Member for Luton South (Rachel Hopkins) to raise van production for obvious reasons. The mandate is a fine idea, but we need the response to the consultation on the mandate. I suspect the companies that the hon. Lady talks to in her constituency want to know the rules of the game before they can work with those rules. I am sure she is looking forward to that point being raised.

The transition to electric vehicles brings into question fuel and excise duty. It is well known that the Treasury is set to lose a lot of money and a new source of revenue will be required. Fuel duty revenues pre-pandemic were about £28 billion per year, and vehicle excise revenues were approximately £6 billion. I cannot believe this has not been discussed in the hallowed halls of the Treasury, but does that mean that road pricing is a serious possibility? There has been no mention of that as a solution from the Government. Does the Minister concur?

[Wera Hobhouse (Bath) (LD)]

It is interesting to hear the hon. Member talk about road pricing. Does he actually support something like “pay as you drive”, in order to charge people for the miles that they drive rather than anything else?

[Steve Brine]

No, and before the Liberal Democrats try to produce another attack leaflet to say that is what I was saying, the hon. Lady can strike that from the record. That is certainly not what I was saying, but I am asking the Minister whether the Government are considering it. Surely the Treasury are considering that loss of revenue. From his previous role as Chair of the Transport Committee, the Minister will know that that was laid down as a challenge to the Government. I know that the Committee is still waiting for a response to that. I am rather cheekily asking the Minister whether he has yet to respond to himself. Could he do so today?

I will raise some more concerns about the availability of electric vehicles. Certainly in my constituency, consumers are embracing the change to electric vehicles as people are understandably more and more concerned about the environment. However, we have already heard about the supply available to buyers. The current average waiting time for an EV is seven months, according to the Library. Companies such as Volkswagen have at least a 10-month wait from the time the car is bought to its delivery. I would suggest that that is a barrier to purchase. It is concerning, because forcing people to make the change to EVs will once again increase the waiting times as demand increases. People cannot be expected to bear a cost that is due to factors out of their control.

There is a current fall in demand for EVs because of the dip in the economy and the spike in inflation. I asked a previous Minister in the Department about this. What conversations are the Government having with industry to try to help them meet demand? I realise that the pandemic has hugely got in the way of that, but what conversations are the Government having with industry to try to stimulate demand?

Tesla has recently smashed the cost of EVs by a reported £7,000. There has been an expansion of EVs, but only 24 models are priced under £32,000 due to the cost of the battery technology. Even the UK boss at Kia, Paul Philpott, has said that car makers are finding it “economically difficult” to bring affordable smaller vehicles to market due to the high cost of batteries, despite the ban on the sale of all new petrol and diesel cars looming in 2035.

I will gently remind the Minister about the up-front cost and a serious lack of a second-hand market for electric vehicles. That is a whole other subject, with only 3% of used car transactions involving EVs in 2021. I hope that that market will start to emerge as we make the transition, so that many lower-income families will not be priced out of even having a conversation about switching to an EV. It is hugely unfair that they want to do the right thing, but they know they cannot.

In closing, I support the move to electric vehicles, and I know that my constituents do. I see more and more EVs on the streets of my constituency. The phasing-out of all new petrol and diesel cars by 2035 has my support, but it is clear that the infrastructure is far from fully developed, with many complaining about teething problems. It is obvious that to meet the target, and seriously increase the rate at which the infrastructure is being implemented, especially the distribution of charging points, we need to see a step change to meet the current ambition.