The government is set to inject £1.3 billion into the Electric Car Grant scheme, aiming to boost the adoption of electric vehicles (EVs) in the UK. This funding, announced in the upcoming Budget, follows the scheme's inception in July as part of the transition to zero-emission vehicles. The government claims it has facilitated 35,000 EV conversions, but early research suggests it hasn't attracted entirely new buyers. The scheme provides a discount of up to £3,750 on eligible vehicles, with an initial fund of £650 million. However, a recent study by New AutoMotive, a non-profit supporting the UK's EV transition, found that the scheme has yet to expand the EV market. EVs covered by the scheme accounted for 23.8% of new registrations in September, unchanged from before the grant's announcement. Critics argue that the scheme may not be prompting consumers to buy EVs they wouldn't have otherwise purchased. The Budget will also allocate funds for more charging points and a consultation on charging solutions for those without driveways. Additionally, a potential new tax in the form of a pay-per-mile charge for EV owners from 2028 has been proposed. This move aims to address the lack of a fuel duty equivalent for electric vehicles. However, there's concern among campaigners that overall taxes on drivers might increase. The Labour government faces criticism for prioritizing EV subsidies over addressing rising taxes and inflation for ordinary families. Chancellor Rachel Reeves is expected to increase taxes to tackle NHS waiting lists, national debt, and the cost of living, despite calls to avoid further tax hikes on drivers.
