ZEV Mandate revisions could cost UK economy £2.9bn
Weakening the ZEV Mandate would send out the wrong message to industry and could cost the UK economy more than £2.9bn.
This is according to new analysis carried out by BEAMA, the trade association representing the national energy infrastructure sector.
It has compared current ZEV Mandate targets to a revised mandate that stipulates 50% of new vehicle sales must be electric by 2030. It said that replacing projected electric vehicle sales with hybrids could see the Treasury lose up to £2.9bn in VAT revenues, while the fall in EV sales could add up to losses of £16.7bn between 2030 and 2034.
Matt Adams, head of electrical transport systems at BEAMA, said: “You don’t attract investment by moving the goalposts. Businesses have invested in the UK because government set a clear direction of travel towards electrification.
“Weakening the ZEV Mandate risks sending the opposite message at exactly the moment Britain should be giving organisations confidence to invest.
“Taken alongside proposals such as eVED, which could cost the economy over £4bn in its first year, there is a growing risk that businesses receive mixed messages about the pace and direction of the UK’s EV transition. Businesses could be forgiven for wondering whether the UK is still fully committed to the transition it has asked industry to invest behind.”
