Thank you for contacting me about electric vehicles.
Thank you for the invitation to attend the British Vehicle Rental and Leasing Association event on 14 September. I regret that I could not attend the event due to my other parliamentary duties.
As part of an ambitious ten-point plan for a Green Industrial Revolution, I welcome that the Government will bring forward the date at which sales of new petrol and diesel cars will end to 2030. EVs will play a crucial role in helping the UK to reach net zero carbon emissions by 2050. By 2035, all new cars and vans must be zero emission at the tailpipe and the Government has revealed its intention to install 300,000 public EV charge points by 2030 – equivalent to almost 5 times the number of fuel pumps on our roads today.
The Government has an important role to play in supporting the transition. That is why I welcome the plug-in car grant, which has so far supported the purchase of nearly half a million vehicles. Now, ministers are focusing the grant on the cleanest and most affordable zero emission models, providing grants of up to £1,500 for electric cars priced under £32,000.
You can also claim capital allowances on cars you buy and use in your business. My understanding is that cars with CO2 emissions of less than 50g/km are eligible for 100 per cent first year capital allowances. If you are a sole trader or a partner you can claim simplified mileage expenses on business vehicles instead, so long as you have not already claimed for these vehicles another way.
Of course, infrastructure and production capacity must keep pace with EV sales, which is why I welcome that the Government is investing £3.5 billion to support the automotive sector and consumers in the transition to zero emissions vehicles. This includes: £1 billion of Government investment to support the electrification of UK vehicles and their supply chains; £620 million for targeted electric vehicle grants and infrastructure; and £275 million to extend support for charge point installation at homes, workplaces, and on-street locations.
So far, government funding, alongside private sector investment, has supported the installation of more than 29,600 public electric vehicle charging devices, of which over 5,400 are 'rapid'. The Government has also changed building regulations to require charge point infrastructure in new homes and non-residential buildings.
But there is much more to do. I know that the Government will be taking forward other measures from its ‘Taking Charge’ strategy in the coming months, including the new £450 million Local EV Infrastructure Fund which will support local authorities, working with industry, to deliver charge points for drivers without off-street parking. It will also be reforming its Electric Vehicle Home charge Scheme to focus on renters, leaseholders and those living in flats and expanding its workplace charging scheme.
Thank you again for taking the time to contact me.