Electric Vehicles: Impact on Household Energy Bills

Lord Broers Excerpts

Wednesday 23rd June 2021 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

My noble friend makes a very good point about trying to increase footfall on the high street at the same time as increasing the use of electric vehicles. The on-street residential charge-point scheme is available to all local authorities to provide public charge points for their residents who do not have access to private parking. To date, the scheme has supported over 105 local authorities to fund over 3,900 charge points, and this year another £20 million is available to ensure that more local authorities can benefit. Additionally, I am aware that Ofgem are talking to people such as Costa Coffee and Marks & Spencer to see whether we can put more charge points at their out-of-town sites.

[Lord Broers (CB) [V]]

My Lords, if home electricity prices apply, the cost per mile to propel a typical electric car will be very much lower than that needed to propel a fossil-fuel car. However, two-thirds of the cost of petrol and diesel is duty and VAT. Do the Government plan to tax electricity for electric cars in a similar way, or will they retrieve the approximately £30 billion lost to the Exchequer by other means, such as the long-rumoured road pricing, and how would such changes be phased in?

[Baroness Bloomfield of Hinton Waldrist (Con)]

The noble Lord will appreciate that matters of taxation are for the Chancellor, but the Government have set out that, as we move forward with this transition away from petrol and diesel cars and vans, we will need to ensure that the tax system continues to encourage the uptake of electric vehicles. Revenues from motoring taxes must keep pace with this change to ensure that we can continue to fund the first-class public services and infrastructure that people and families across the UK expect. I am sure that the Treasury will be looking at other ways of taxing electric vehicles in the future.