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UK Government announces cuts to electric vehicle grants

18 March 2021, 18:04 GMT 1 min read

Today the UK Government has announced it is reducing its grant scheme for electric cars, vans and trucks from £3,000 to £2,500 and lowering the upper price limit for eligible vehicles. 

Responding to the news, Sandra Roling, Head of Transport at the Climate Group, said: 

“It’s clear that the grant scheme can’t last forever – and nor should it. But the sudden drop in support for those making the switch to electric is unhelpful in a year where we’re expecting a surge in both individual and business purchases of electric vehicles. Given the Government’s previous leadership in this space, it’s an odd decision to take just a few months before they host the international climate conference, COP26.
 
“Whilst we expect price parity between electric cars and those that run on petrol and diesel over the next few years, there’s still a way to go with medium and heavy-duty vehicle segments. Incentives that help to make zero emission van and truck purchases commercially viable are critical for driving initial uptake, and reaching the economies of scale that will bring prices down in the medium-term. We urge the Government to refrain from further cuts if they want businesses to be able to lead the country in going electric by 2030.”