Labour has refused to introduce more incentives for electric vehicles in addition to rejecting cut VAT at charging stations in the latest clash with MPs.
It follows a debate in the House of Commons earlier today which saw Labour face off with MPs with heated discussions centred around the Zero Emission Vehicle mandate.
The mandate requires at least 28 per cent of new vehicle sales to be electric by the end of the year before moving to 100 per cent by 2035.
In the Commons, Lilian Greenwood MP, Future of Roads Minister, stated that the current support measures are working with sales of electric vehicles increasing. Despite this, she was asked what steps were being taken to help further support the uptake of EVs.
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The Future of Roads Minister Lilian Greenwood took questions from MPs on electric vehicle support
PARLIAMENT TV/PA/GETTY
The question was raised by Perran Moon, Labour MP for Camborne and Redruth, who warned that there remain “many misunderstandings and myths about electric vehicles”.
He highlighted how consumer confidence was low, asking: “What can the Government do to increase this by dispelling some of the nonsense peddled by vested interests?”
In response, Greenwood explained that the Government is working closely with industry stakeholders to promote “positive messaging” around EVs and improve faith in the cleaner technology.
However, Christopher Chope, Conservative MP for Christchurch, questioned why the Government has not cut the VAT on public charging points for electric vehicles from 20 per cent to five per cent and shown no support for the Exemption from Value Added Tax (Public Electric Vehicle Charging Points) Bill.
A recent report warned that unless the VAT rate is cut, drivers will end up paying an extra £85million to charge their cars at public stations.
Zapmap data also shockingly estimated that VAT contributions will rise to £315million by 2030 as more drivers switch to electric vehicles.
Greenwood said: “Any matters relating to taxation are a matter for the Treasury rather than for this department, I’m sure that the Chancellor will be looking at the proposals he brings forward.”
An HM Treasury spokesperson told GB News: “The shift to electric vehicles is crucial for decarbonising the transport sector and tackling climate change, and will support growth and productivity across the UK.
“Our balanced approach ensures fiscal stability while continuing to provide incentives through the tax system such as freezing Vehicle Excise Duty First Year Rates for EVs to encourage the transition to electric and zero emission vehicles.”
Conservative MP for Mid Buckinghamshire Greg Smith warned: “Without fleet sales, which we know are warped by huge tax incentives over practical vehicle choices, electric car demand just isn’t there.
“So, when will the minister understand that people are crying out for a different way to decarbonise their private vehicles? Battery electric just isn’t popular. And when will they stop trying to tell people they should want this? This is just a ‘Government knows best attitude’ at its very worst, isn’t it?”
Greenwood fired back at the Tory MP, clarifying that it was a Conservative Government which brought in the ZEV mandate in the first place. Smith responded by saying the Future of Roads Minister should “just get the bureaucracy out of the way and let our innovators innovate and live”.
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Public charging points are subject to a 20 per cent VAT cost
PA
Jim Shannon, Democratic Unionist Party MP for Strangford, criticised the lack of charging infrastructure in Northern Ireland’s countryside as the main reason drivers are sticking to their petrol and diesel cars and asked what was being done to expand the network.
Greenwood acknowledged the problem and said the Department for Transport has already committed £200million in the Autumn Budget to support the rollout of more charging points with over 20,000 added last year and a 45 per cent increase in rural charge points.