The automotive industry has reacted to the measures which were announced in Chancellor Rachel Reeves’ Spring statement yesterday.
The speech mentioned the Planning and Infrastructure Bill, which is an opportunity to address planning barriers for electric vehicle charging infrastructure, but discontent is the tone in the industry as key issues impacting automotive were not addressed.
Sue Robinson, CEO of the National Franchised Dealers Association (NFDA), said: “Today the Chancellor’s statement provided no update on some of the issues affecting the automotive retail industry.”
“NFDA remains of the view that raising employer NICs by 1.2 per cent to 15 per cent will significantly increase the cost of running a franchised dealership, particularly at a time when businesses are already facing pressure from rising energy costs and adapting to the shift towards electric vehicles.”
“Furthermore, the Spring Statement did not provide an update on the electrification of the UK car parc.”
The future tax on expensive EVs was also not addressed in the speech.
Iain Reid, head of editorial at Carwow, said: “With public finances under pressure, it’s clear the Government wasn’t in a position to offer any big-ticket incentives for motorists – especially when it comes to buying more electric vehicles.
“There is a simple move that could have helped get more drivers into EVs: scrap the looming ‘expensive car supplement’ for electric models. From 1 April, EVs with a list price over £40,000 will be hit with an extra £410 a year in road tax.
“This undermines the in-life savings that make EVs attractive and risks pushing drivers towards cheaper petrol models instead – making it even harder for the Government to achieve its own net-zero ambitions.”
Vicky Edmonds, CEO of EVA England, echoed these sentiments but argued for an increase of the expensive car tax threshold as opposed to scrapping it altogether.
She added: “Increasing the expensive car tax threshold for EVs should have been a priority while they remain on average more expensive than their petrol and diesel counterparts.”