Growing uncertainty around vehicle taxation is causing millions of British drivers to reconsider switching to electric cars, new research indicates.
Tax Changes Create Buyer Hesitation
Almost half of UK drivers (45%) report that electric vehicle taxation has directly impacted their decision to move away from petrol and diesel vehicles. The survey from Close Brothers Motor Finance reveals that recent government changes to Vehicle Excise Duty and the Expensive Car Supplement have created significant uncertainty among potential buyers.
John Cassidy, Managing Director of Sales at Close Brothers Motor Finance, commented: "These findings show that while drivers are keen to switch to electric vehicles, recent tax changes are creating uncertainty and slowing adoption."
Shift in Consumer Behaviour
The research uncovered a notable shift in purchasing intentions among British motorists. Twenty-two percent of drivers have completely abandoned plans to purchase a new electric vehicle, while nearly a quarter (24%) are now considering buying a used EV instead.
This change in consumer behaviour comes as most electric vehicles lose their full exemption from road tax, creating what many perceive as additional financial barriers to making the switch.
Impact on Net Zero Targets
The findings suggest that recent policy shifts aimed at closing the tax gap between EVs and traditional vehicles may be inadvertently slowing momentum in the UK's electric car market.
Mr Cassidy emphasised the challenge ahead: "Despite schemes such as the Electric Vehicle Grant, the upfront costs of new cars remain too high for many motorists."
He added that if the UK is to meet its net zero targets, additional support measures through incentives, infrastructure, or targeted guidance will be crucial to keep EVs within reach for everyday drivers.
The survey results highlight the delicate balance policymakers must strike between generating tax revenue and encouraging sustainable transportation choices.
