EV grants slashed by government

The government has slashed grants for electric cars and vans, meaning only about 20 EVs are still eligible.

The announcement means that grants for EVs have been reduced from a maximum of £2,500 to £1,500, while the price ceiling has been reduced from £35k to £32k. Grants for small vans have been cut from a maximum of £3,000 to £2,500 and for large vans from £8,000 to £5,000.

Mike Hawes, SMMT chief executive, said: “Slashing the grants for electric vehicles once again is a blow to customers looking to make the switch and couldn’t come at a worse time, with inflation at a ten-year high and pandemic-related economic uncertainty looming large.

“Industry and government ambition for decarbonised road transport is high, and manufacturers are delivering ever more products with ever better performance. But we need to move the market even faster – from one in a hundred cars on the road being electric, to potentially one in three in just eight years – which means we should be doubling down on incentives. Other global markets are already doing so whereas we are cutting, expecting the industry to subsidise the transition, and putting up prices for customers. UK drivers risk being left behind on the transition to zero-emission motoring.”