Budget sees grants for new electric cars reduced by £500

Support us and go ad-free

Grants for new electric cars have been cut in chancellor Rishi Sunak’s budget.

Steve Gooding, director of motoring research charity the RAC Foundation, warned that this risks failing to “tip the balance” for undecided buyers if it falls quicker than the retail price of electric cars. He said: “This is still a fragile market and ultimately the advertised benefits of cheaper fuel and other running costs mean nothing to drivers if the up-front cost of the vehicle is too high in the first place, compared to the petrol or diesel equivalent.”

The maximum grant for motorists who make the switch to an electric car will be reduced by £500 to £3,000 from Thursday. Some £403m of government funding will extend the grant to 2022/23.

The plug-in car grant has been in place since 2011 to support the uptake of ultra-low emission vehicles. It was originally set at £5,000 for all eligible ultra-low emission cars, but in 2018 it was cut to £3,500 and hybrids were excluded.

Figures published by the Society of Motor Manufacturers and Traders shows 38,000 pure electric new cars were bought in 2019, more than double the total in the previous year. These cars now hold a 1.6% share of the new car market.

Read on...

Support us and go ad-free
Support us and go ad-free

Do your bit for independent journalism

Did you know that less than 1.5% of our readers contribute financially to The Canary? Imagine what we could do if just a few more people joined our movement to achieve a shared vision of a free and fair society where we nurture people and planet.

We need you to help out, if you can.

When you give a monthly amount to fund our work, you are supporting truly independent journalism. We hold power to account and have weathered many attempts to shut us down and silence the counterpoint to the mainstream.

You can count on us for rigorous journalism and fearless opposition to an increasingly fascist government and right wing mainstream media.

In return you get:

  • Advert free reading experience
  • Behind the scenes monthly e-newsletter
  • 20% discount from our shop


The Canary Fund us