UK drivers turn their backs on EVs as Rachel Reeves torpedoes Ed Miliband
British drivers would be less likely to buy electric cars if Rachel Reeves' new car tax changes are introduced in a blow to Ed Miliband. The Chancellor confirmed plans to introduce a 3p per mile electric Vehicle Excise Duty (eVED) fee from 2028 at her Autumn Budget in a bid to offset the loss of fuel duty revenues.
Although the Chancellor has supported EVs with investment in infrastructure, there have been fears the move could dramatically reduce demand for models. A new poll of around 12,000 motorists conducted by Electrifying.com and the AA, found that 55% said the new fees would deter them from going electric.
This comes in contrast to Ed Miliband, who as Energy Secretary, has backed the UK's electric car revolution, previously supporting plans to accelerate the transition to electric vehicles. The survey found that just 14% of road users believe that the overall running costs of an electric car are lower than those of a petrol or diesel vehicle.
SMMT data found that electric car market share dropped in January, with manufacturers already starting to row back on their EV plans after admitting demand had dipped.
Edmund King, AA president, said: "Mixed messages from the Government are confusing drivers and leaving uncertainty. The early adopters have already made the switch, but mainstream motorists need more accurate information to convince them. Even with e-VED, if they can charge at home, they will still be better off going electric. The EV transition is essential, but drivers still need the right incentives and information to make that leap of faith."
After the Autumn Budget, the Office for Budget Responsibility (OBR) previously claimed at least 440,000 fewer electric cars are likely to be sold as a result of the policy.
Ginny Buckley, founder and CEO of Electrifying.com claimed that the poll should be a "wake-up call" for those on Whitehall. Ginny blasted officials for "confusing Government decision-making," which risked affecting the confidence of any car buyers who were considering making the switch.
She added: "The proposed pay-per-mile tax sends the wrong signal at the wrong time. Instead of accelerating the EV transition, it risks slamming on the brakes. You cannot claim to support mass adoption while undermining it with the threat of additional taxation.
"No driver would expect to move forward with one foot on the accelerator and the other on the brake - and neither should the Government."