Zero Emission Vehicle Mandate

Paul Kohler Excerpts

Monday 7th April 2025 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

I thank the Secretary of State for her statement, and for advance sight of it. Let me also congratulate the shadow Secretary of State on his birthday, and note that he is much younger than the Liberal Democrat spokesperson.

It is clear that the Government must take urgent steps to help the car industry make the switch to electric vehicles. Although increasing flexibility in the mandate is welcome, voices across the industry have made it clear that we also need to bolster demand by lowering the barriers for individuals and businesses to purchase electric vehicles. As the Secretary of State knows, the recent surge in demand to which she referred was a result of significant discounting to promote sales. It is crucial that, as well as improving the charging network, we end the inequality between public and private charging by bringing the VAT rate for public charging into line with that for home charging, at 5% rather than 20%. Not only is the present system damaging demand, but it is wrong to penalise those who have no access to private charging. Ministers should also postpone the increase in vehicle tax on electric cars, and explore the possibility of reintroducing the plug-in car grant.

As the Secretary of State made clear on the media round this morning, the spectre of Trump’s tariffs also looms large over the industry. If the Government are serious about protecting car manufacturing in the UK, the Prime Minister must continue to work with our allies in Europe and around the world on a co-ordinated response. The only way to tackle Trump is to negotiate from a position of strength, and to show that the UK is not alone and will not be bullied.

May I ask the Secretary of State three questions? First, what conversations has she had with the Chancellor about lowering the public charging rate to 5%, and what other measures are the Government considering to strengthen EV demand? Secondly, can she confirm that the measures announced today are a response to the ZEV consultation that ended in February, and tell us what, if any, additional measures are being considered in respect of the tariffs that have since been announced? Thirdly, will the Government start negotiations with the EU about the formation of a UK-EU custom union, to cut red tape not only for vehicle manufacturers but for all UK industries?

[Heidi Alexander]

I assure the hon. Gentleman that the Government keep the VAT variation between public and private charging under review. The 20% standard rate to which public charge points are subject applies to most goods and services, with very few exemptions. We are trying to give people low-cost and affordable options for public charging by investing £380 million to roll out overnight chargers, which are cheaper and will be installed to help those without a driveway. Today, Brighton & Hove City Council confirmed that it had signed the contracts to deliver 6,000 of those chargers, and in February Midlands Connect announced that it was rolling out more than 16,000 across the midlands, helping drivers to charge their vehicles for less.

The hon. Gentleman asked me whether today’s announcement was a response to the consultation that we launched at the end of December, which closed in February. It is indeed a Government response to that consultation. As for the discussions that we will have with European colleagues, we will continue those discussions. Although the hon. Gentleman tried to tempt me into giving him a commitment to rejoin an EU customs union, I am afraid that that is not a commitment I can give.