Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of taxation, energy costs and wider ownership costs on the transition to zero emission vehicles.

This Government remains fully committed to the EV transition and there are now over 2 million licensed EVs in the UK. The transition to EVs will drive economic growth, help the country meet its climate change obligations, and improve air quality. The most recent data shows that motorists can save up to £1,500 per year when driving electric compared to petrol and diesel if they mostly charge at home.

The upcoming implementation of Electric Vehicle Excise Duty – or eVED – for electric and plug-in hybrid cars will see EVs pay 3p per mile, or half of the fuel duty average, ensuring EVs remain attractive for motorists as HM Treasury safeguards revenue for maintaining roads in the future.

The government is also taking action to bring down energy costs for consumers and businesses, including by reviewing the cost of public electric vehicle charging, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers. The Department for Transport is also providing consumers with support for the upfront cost of transitioning to an electric vehicle. Through £2 billion of investment, the Electric Car Grant has already helped over 110,000 drivers with up to £3,750 off a new, sustainably manufactured, and affordable EV.