Petrol and diesel drivers could be forced to pay more environmental taxes to help fund incentives for electric car buyers as the UK enters a desperate situation.
The proposed environmental levy for ICE vehicles would help generate funds to slash the cost of electric cars for consumers, according to experts.
It comes after the Government previously offered financial support through the Plug-In Car Grant scheme, which provided up to £1,500 towards the purchase of electric and plug-in hybrid vehicles, but this was scrapped in 2022.
But experts have warned the current measures are not enough for the UK to remain on target for its net zero ambitions by 2050.
Do you have a story you’d like to share? Get in touch by emailingmotoring@gbnews.uk
Electric car sales need to make up at least 22 per cent of new car sales this year to stay on target
PA/GETTY
William Brown, managing director of International Motors, which imports Subaru and Isuzu vehicles to the UK suggested that the Government should reintroduce financial support for private buyers purchasing electric vehicles.
He told the Independent: “Maybe the only solution is to have some sort of additional environmental tax on ICE vehicles.”
“On the one hand you’re sending a clear message that you can buy an ICE vehicle, but it’s going to cost more money. But with that money you can reinvest it to help fund incentives to get people on the journey to EVs.”
The end of the grant scheme has contributed to slower adoption rates of electric vehicles among private buyers, with most new electric cars now being sold to fleet customers rather than individual consumers.
Official reports detailed how only 18.7 per cent of new car sales in 2024 are fully electric, falling short of Government targets. In order to stay on track the UK would need to have at least 22 per cent on new car sales electric this year, moving to 80 per cent in 2030 and 100 per cent in 2035.
“What I’d like them to do is incentivise consumers to buy electric vehicles,” Brown added. “The problem is we need more demand for electric vehicles and the only way to do that is to help consumers with the buying decision.”
Under the Government’s Zero Emissions Vehicle mandate, car manufacturers face increasingly stringent targets for electric vehicle sales.
But Brown warned: “The targets and the fines are very heavy for the industry to take on, which is why we’re seeing things like redundancies and factory closures. It’s just not sustainable. The Government needs to do something.”
His proposal for an environmental tax on petrol and diesel vehicles aims to create a self-funding system for electric vehicle incentives.
The International Motors boss suggested the additional cost on conventional vehicles would send a clear signal to consumers while generating revenue for EV grants.
Noting how a similar grant scheme is in place across Norway it has helped successfully drive electric vehicle adoption.
However, the Society of Motor Manufacturers and Traders has taken a different stance from Brown on how to boost electric vehicle adoption.
LATEST DEVELOPMENTS:
Petrol and diesel cars could face new taxes to help incentivise people to buy electric vehicles
GETTY
The industry trade body has been calling for VAT to be halved on new electric cars to stimulate demand as well as a reduction in VAT on public EV charging to match the rates for home charging.
