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Government fails to act on advice from industry and Select Committee

Wednesday, January 16, 2019 - 10:59
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The BVRLA shares the BEIS Committee’s disappointment in government’s recent response to the committee’s electric vehicle report, expressing concerns that opportunities are being missed to incentivise the uptake of EVs.

The ‘Electric vehicles: driving the transition’ report, published in October, saw the BEIS Committee echo the BVRLA’s calls for Government to introduce a fairer tax regime that will accelerate the move to zero-emission vehicles.

In its Autumn report, the BEIS Committee made the recommendation for government to introduce a preferential electric vehicle rate for VED and bring forward the planned lower rate of Company Car Tax (CCT) from April 2020 to April 2019.

In its formal response published on 11 January, the government chose not to adopt this recommendation, arguing that the tax system means company car drivers already receive “a significant discount compared to a conventionally fuelled alternative.”

The government did however state that it would introduce new tax bands from 2020-21 that “focus incentives on the very cleanest cars that allow most journeys to be zero emissions.”

Rachel Reeves MP, Chair of the BEIS Committee, commented: “The Government continues to fail to match its own rhetoric in encouraging people to switch to electric vehicles (EVs). The Government’s response to the BEIS Committee’s report highlights once again the lack of ambition and vagueness of the UK Government’s targets on zero-emissions vehicles.”

BVRLA Chief Executive Gerry Keaney said: “By failing to change the tax regime now to incentivise the uptake of electric vehicles, government is missing the opportunity to drive change quickly. It is disappointing to see an ongoing lack of alignment between its taxation policy and its wider environmental ambitions.”

The BVRLA will continue to engage with Parliamentarians, officials and other stakeholders on this issue.

The Government’s response in full is available to read online as is the BEIS Committee report.

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