Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to make electric vehicle ownership more affordable.

The Government’s current intervention in the electric vehicle market aims to accelerate upfront price parity between electric and internal combustion engine equivalents, making electric vehicles more affordable for all consumers.

The Government had already committed £1.5 billion to support the early market and remove barriers to zero emission vehicles ownership. Alongside the new phase out dates we have pledged a further £2.8 billion package of measures to support industry and consumers to make the switch to cleaner vehicles.

The Government is providing grants for homeowners, businesses and local authorities to install chargepoints and is also supporting the deployment of rapid chargepoints. The Government will provide £1.3 billion over the next four years to support the continued roll-out of chargepoints on motorways and major A roads, in homes and businesses and on-street.

Since 2011, the Government has provided around £1.3 billion in grant funding to bring ultra-low emission vehicles onto UK roads, reducing the upfront cost of over 300,000 ultra low emission vehicles, of which over 200,000 are zero emission vehicles. The plug-in vehicle grant scheme was renewed last year, with £582 million of funding intended to last until 2022-23.

Drivers of ultra-low emission vehicles also receive other benefits, including lower tax rates and grants towards the installation of chargepoints. For example, all zero emission models will pay 1% company car tax in 2021-22 and a rate of 2% in 2022-23 through to 2024-25. Additionally, all zero emission cars are exempt from vehicle excise duty (VED).

Local authorities may also provide incentives, such as free parking or exemption from the congestion charge.