UK households are being alerted to a significant Autumn Budget change that will see the government pour billions into the Electric Vehicle (EV) scheme. Chancellor Rachel Reeves is expected to confirm the details on Wednesday, November 26.
Major Funding Injection for Electric Vehicles
The centrepiece of the announcement is an extra £1.3 billion to fund the initiative designed to encourage the use of electric cars. This comes after early research indicated that the existing Electric Car Grant scheme, which launched in July with an initial £650 million fund and offers up to £3,750 on eligible cars, has not entirely succeeded in attracting new buyers as hoped.
Transport Secretary Heidi Alexander defended the investment, telling the BBC's Laura Kuenssberg that subsidising EV sales is crucial for the country's future. "This is an investment in the country's future... and the good quality manufacturing jobs associated with that," she stated.
Focus on Charging Infrastructure and Future Taxes
A key part of the new funding, reportedly £200 million, is earmarked to accelerate the rollout of chargepoints across Britain. The government stated this will "support the creation of thousands of charge points" and provide extra resources for local authorities, specifically to help those without off-street parking.
Furthermore, the Chancellor is expected to publish a consultation on Permitted Development Rights to make it simpler and cheaper for people without a driveway to charge their vehicles.
However, the Budget also brings potential future costs for EV owners. There is speculation that it could lay the groundwork for a new pay-per-mile charge tax, potentially starting from 2028. This is seen as a measure to address the growing 'tax gap' from the decline in petrol duty as more people switch to green vehicles. This change would be significant ahead of the 2030 ban on the sale of new petrol and diesel cars.
