Electric Vehicles: Excise Duties
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the introduction of Electric Vehicle Excise Duty on consumer uptake of electric vehicles; and what steps she is taking with Cabinet colleagues to ensure that the operation of Vehicle Excise Duty aligns with the objectives of the Electric Car Grant and policies to support the banning of purchase of new Hybrid, Petrol and Diesel Vehicles.
Answered by Dan Tomlinson
The Government remains firmly committed to the Electric Vehicle (EV) transition, and has carefully considered the potential impact of electric Vehicle Excise Duty (eVED) on consumer uptake of electric vehicles.
eVED has been designed to ensure electric vehicle drivers make a fair contribution to the public finances as fuel duty receipts decline, while maintaining a strong incentive to switch to electric vehicles. From April 2028, fully electric cars will pay 3 pence per mile, around half the fuel duty paid per mile by the average petrol or diesel car, while plug-in hybrids will pay 1.5 pence per mile.
Alongside, the Government is helping drivers and the automotive sector make the switch to EVs through investing over £7.5 billion out to 2035, including £2 billion for the Electric Car Grant, and further support for chargepoint rollout. The Treasury works closely with the Department for Transport, to ensure motoring tax policy is considered alongside wider policies to support the transition to zero emission vehicles.
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