MPs unite in calls for Budget to incentivise EVs through tax incentives

A cross-party group of 42 Parliamentarians have countersigned a letter to the Chancellor to use this Budget to encourage the uptake of electric vehicles.

The letter, written by Neil Parish, Chair of the Environment, Food and Rural Affairs Committee, makes clear that tax incentives can stimulate demand for electric vehicles and call on the Chancellor to bring forward the company car tax reduction to 2% in April 2019, rather than maintaining the current plan to increase it to 16% in 2019/20, before falling to 2% in 2010/21.

The letter says: "Taxation policy is a critical lever in stimulating demand for electric vehicles. Ensuring the right tax incentives are in place is essential to enable this. We believe this relatively smack change to Company Car Tax (CCT) would visibly demonstrate the government's determination to increase the number of electric vehicles on our roads and would have a significant impact on driving consumer behaviour.

"Bringing forward the reduction of BiK to 2% would incentive consumers to purchase more electric vehicles."

This comes just days after the BVRLA, along with other leading transport, business and environmental organisations submitted a joint letter to the Chancellor making a pre-Budget plea for tax incentives to drive the uptake of electric vehicles.