Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department is taking to inform the public of the benefits of electric powered vehicles.
Answered by Andrew Stephenson - Minister of State (Department of Health and Social Care)
On 9 September 2021 the Government published an informational leaflet addressing commonly held misconceptions and concerns regarding electric vehicles (EVs). This comes in addition to the Go Ultra Low initiative, which since launching in 2014 has seen Government collaborate with industry and other stakeholders to provide basic, practical advice for those considering making the switch to zero emission driving. The Government will continue to build on this work as EVs sales increase and become more commonplace on our roads.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effect of the transition of public and private sector fleets to electric vehicles on (a) the development of electric vehicle second hand markets and (b) electric vehicle affordability.
Answered by Rachel Maclean
We estimate that fleet operator businesses buy over half of the new vehicles sold each year and subsequently are major suppliers to the second hand market. Supporting them to choose zero emission vehicles will therefore help to grow the second hand market. Our ambitions for zero emission driving are supported by an accompanying package of £2.8 billion, with 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.
Once fuel costs and tax incentives are factored in, we expect the total cost of ownership to reach parity during the 2020s, compared to petrol and diesel cars. It costs from 1p/mile to run a new electric vehicle, compared to around 10p per mile for new diesel/petrol vehicles.
Asked by: Lilian Greenwood (Labour - Nottingham South)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans he has to provide support for the purchase of used electric vehicles; and if he will make a statement.
Answered by Rachel Maclean
The second-hand electric vehicle market will have an important role in the UK’s transition to zero emission vehicles (ZEVs). We already have various financial incentives to stimulate the new ZEV market and increase the supply of these vehicles feeding through to the second-hand market. Additionally, our funding for chargepoint infrastructure at homes, workplaces, residential streets and across the wider roads network is also supporting consumers to buy used ZEVs.
Fleet operator businesses buy over half of the new vehicles sold each year and are major suppliers to the used market, therefore encouraging them to go zero emission will spur the used ZEV market. As confirmed in March 2020, users of zero and ultra-low emission cars will continue to benefit from favourable company car tax rates (compared to conventionally fuelled vehicles) until 2024-25. In addition, buyers of both new and used ZEVs do not pay vehicle excise duty.
Asked by: Lilian Greenwood (Labour - Nottingham South)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans he has to support people to purchase used electric vehicles; and if he will make a statement.
Answered by Rachel Maclean
The second-hand electric vehicle market will have an important role in the UK’s transition to zero emission vehicles (ZEVs). We already have various financial incentives to stimulate the new ZEV market and increase the supply of these vehicles feeding through to the second-hand market. Additionally, our funding for chargepoint infrastructure at homes, workplaces, residential streets and across the wider roads network is also supporting consumers to buy used ZEVs.
Fleet operator businesses buy over half of the new vehicles sold each year and are major suppliers to the used market, therefore encouraging them to go zero emission will spur the used ZEV market. As confirmed in March 2020, users of zero and ultra-low emission cars will continue to benefit from favourable company car tax rates (compared to conventionally fuelled vehicles) until 2024-25. In addition, buyers of both new and used ZEVs do not pay vehicle excise duty.
Asked by: Baroness Randerson (Liberal Democrat - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government what assessment they have made of their decision to alter the grant scheme for plug-in electric vehicles, announced on 18 March, on demand for electric vehicles from (1) private individuals, and (2) fleet purchasers; and what further financial encouragement they intend to provide to fleet purchasers in order to meet the Government's targets for ending sales of petrol and diesel cars.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
We signalled our intention to manage an exit from the plug-in car grant in our Road to Zero Strategy, published in 2018, and transition to support through other measures. As the market has developed, we have changed our criteria to focus the plug-in car grant on vehicles, which have the greatest impact on reducing carbon emissions.
In March 2020, the Government extended the plug-in vehicle grant schemes for another three years to 2022/23. For cars, the grant rate is being reduced from £3,000 to £2,500 per car, allowing the funding to last longer and make it available to 20% more drivers, with the cap reducing from £50,000 to £35,000. The increasing choice of new vehicles, growing demand from customers and the rapidly rising number of chargepoints, means we are today, re-focusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.
Although the market is at an early stage, demand for zero emission vans increased substantially in 2020, with increased interest from commercial fleets. We expect this trend to continue as more models are brought to market and supply increases. Since the grant scheme was launched in 2012, it has since supported over 15,000 electric vans and HGVs across the UK. There are now more than 20 models eligible for the grant and this continues to increase.
The Government has pledged a £2.8 billion package of measures to support industry and consumers to make the switch to cleaner vehicles including £1.3 billion for charging infrastructure, £582 million for vehicle grants and up to £1 billion to help secure the transformation of the automotive sector by developing and embedding the next generation of automotive technologies in the UK. We keep our policies and grant rates under review and will monitor the market closely, to ensure the grant remains an effective incentive and good value for money for the taxpayer.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a VAT exemption on sales of low-emission vehicles.
Answered by Jesse Norman
The Government encourages the uptake of vehicles with low carbon dioxide emissions. This is why zero emission cars and electric vans are liable to pay no Vehicle Excise Duty (VED), either at first registration, or subsequently.
The sale of all cars and vehicles is subject to the standard rate of VAT. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. Therefore, the Government has no plans to extend tax reliefs on low-emission vehicles further.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of developing (a) a bonus-malus or grant scheme, (b) 0 per cent or reduced VAT rate on new electric vehicles and (c) other sustainable long-term solutions to replace the existing Plug in Vehicle Grants to incentivise consumer purchase of those vehicles.
Answered by Jesse Norman
The Government already provides ‘Plug-in Grants’ for zero emission cars and ultra-low emission vans, motorcycles and taxis, which provide a discount on the cost of a new vehicle, reducing the price paid by the consumer. At the Spending Review 2020, the Chancellor confirmed £582m to extend these grants to 2022/2023.
VAT makes a significant contribution towards the public finances, raising about £130 billion in 2019/20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what discussions he has had with the Chancellor of the Exchequer on developing a sustainable long-term solution to incentivise consumer purchase of new electric vehicles beyond the existing Plug in Vehicle Grants.
Answered by Rachel Maclean
I have regular conversations with a range of colleagues on increasing the uptake of electric vehicles in the UK. We will continue to consider the long-term need for consumer incentives for the uptake of electric vehicles as the market develops, taking account both of the need to support that market and to ensure taxpayer value for money. We will continue to support industry and consumers to make the switch to cleaner vehicles and publish a clear delivery plan in 2021.
Between July to September 2020 59,738 Ultra Low Emission Vehicles were registered for the first time in the United Kingdom, an increase of 162% on the same period in 2019 and 265% on the same period in 2018.
Asked by: Colleen Fletcher (Labour - Coventry North East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect of the covid-19 outbreak on trends in the levels of sales of (a) new cars and (b) electric vehicles.
Answered by Nadhim Zahawi
The Society of Motor Manufacturers and Traders (SMMT) provide monthly statistics on the registration of new vehicles in the UK. The latest statistics were issued on 6 January 2021 and are summarised as follows:
The SMMT’s statistics for new car registrations for 2020 show the UK new car market fell by -29.4% to 1.63m cars compared with 2.31m cars in 2019. This is consistent with the impact of COVID restrictions on sales in other major car markets in Europe. Within the UK market, Electric Vehicle (EV) car sales continue to grow and accounted for 17.5% of the 2020 new car market: Battery Electric Vehicle sales were up 186% to 108,205; Plug in Hybrid Vehicle sales were up 91% to 66,877; and full hybrids were up 12% to 110,117. Mild hybrid sales are also growing, accounting for 13% of petrol and diesel registrations.
The Department understands that these are challenging times for the automotive sector and manufacturers in general. The Government has been working closely with key industry stakeholders throughout the pandemic to understand how we can support the resilience and continued competitiveness of UK automotive manufacturing at this time.
Asked by: Liz Saville Roberts (Plaid Cymru - Dwyfor Meirionnydd)
Question to the Department for Transport:
To ask the Secretary of State for Transport, how many electric cars have been purchased in each NUTS region in 2020.
Answered by Rachel Maclean
Data for vehicle purchases are not available. However, the following table shows the number of battery electric cars registered for the first time in the UK, by NUTS 1 region, during the first 6 months of 2020.
Data covering all of 2020 are scheduled to be published in April 2021.
NUTS 1 Code | NUTS 1 Region | New registrations of battery electric cars |
UK | United Kingdom* | 31,047 |
UKC | North East | 427 |
UKD | North West | 1,250 |
UKE | Yorkshire and The Humber | 3,617 |
UKF | East Midlands | 1,318 |
UKG | West Midlands | 3,983 |
UKH | East of England | 2,901 |
UKI | London | 2,398 |
UKJ | South East | 7,165 |
UKK | South West | 5,041 |
UKL | Wales | 946 |
UKM | Scotland | 1,658 |
UKN | Northern Ireland | 339 |
* The UK total includes 4 new registrations that could not be assigned a region due to an incomplete or invalid postcode.