Electric Vehicles: Finance

(asked on 6th September 2021) - View Source

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

To ask Her Majesty's Government what assessment they have made of the potential investments required in the electric vehicle manufacturing and charging industry in response to the introduction of a zero emission vehicle mandate.


Answered by
Lord Callanan Portrait
Lord Callanan
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 21st September 2021

The Government had already committed £1.5 billion to support the early market and remove barriers to ZEV ownership. Alongside the new phase out dates for new petrol and diesel cars and vans, we have pledged a further £2.8 billion package of measures to support industry and consumers to make the switch to cleaner vehicles. These ambitions will include up to £1 billion to support the electrification of UK vehicles and their supply chains, £1.3 billion to accelerate the roll out of charging infrastructure and £582 million for plug in vehicle grants.

The March 2020 Budget included the extension of favourable benefit in kind tax rates for zero emission vehicles out to 2025: company car tax is 1% in 2021/22 and 2% in 2022/23 through to 2024/25; and all zero emission cars are exempt from vehicle excise duty (VED)


We are currently consulting on the proposed regulatory framework for the UK with regard to all newly sold road vehicles which includes the option for a ZEV mandate. The consultation closes on 22 September.

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