Government pulls plug on its remaining UK electric car subsidies

theguardian.com:

The UK government has ended the last remaining subsidies for electric cars, arguing it will to free up funds to expand the charging network and support other battery-powered vehicles.

In a controversial move, the government has closed the £300m plug-in car grant scheme to new orders on Tuesday, the Department for Transport said.

The main industry body said the move will leave the UK the only major European country without any incentives for electric cars

The government said the grants had created a mature market for ultra-low emission vehicles, helping to increase the sales of fully electric cars from fewer than 1,000 in 2011 to almost 100,000 in the first five months of 2022 alone.

Battery-powered and hybrid electric vehicles (EVs) now make up more than half of all new cars sold and fully electric car sales have risen by 70% in the last year, and represent one in six new cars joining UK roads.

The DfT said it wanted to concentrate funding on expanding the public electric chargepoint network, and £300m in grant funding will be refocused towards extending plug-in grants to encourage sales of electric taxis, vans, trucks, motorcycles and wheelchair accessible vehicles, as announced in last year’s autumn statement.

Previous reductions in the grants have had little impact on the rapidly growing demand for electric cars, showing that the time was right to shift the resources to charging infrastructure and sales of other types of vehicles, the department argued.

However, the Society of Motor Manufacturers and Traders (SMMT) said the decision to scrap the plug-in car grant sent the “wrong message to motorists and to an industry which remains committed to government’s net zero ambition”, at a time when new car sales have been falling.

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