The urgency follows a report by the Climate Change Committee which revealed that fuel duty makes up nearly half (47 per cent) of all environmental tax income generated in the UK.
New car taxes could be introduced to help plug a £25bn fuel duty gap as the UK transitions to electric vehicles. The urgency follows a report by the Climate Change Committee which revealed that fuel duty makes up nearly half (47 per cent) of all environmental tax income generated in the UK.
The Labour Party government has been urged to introduce new car taxes to help replace fuel duty revenue. Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, said: “Take-up of zero-emission vehicles to the expected levels can only be stimulated if there are bold incentives to encourage demand, more affordable electricity, significant additional investment in infrastructure, and clear and consistent messaging that buying an electric vehicle is the right thing to do.”
He added that the transition should “support industry, jobs and economic growth in the UK”. Ken McMeikan, CEO of Moto, added that expanding the UK’s EV charging network is an “absolutely critical part of this transition”.
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In the wake of the warning, Vicky Edmonds, CEO of Electric Vehicle Association England, explained that the Labour Party government must “take stock of the considerable opportunity that lies in getting the transition to electrified road transport right”.
She added: “This means ensuring EVs are affordable for all, and that the supporting infrastructure is affordable and accessible if we are to avoid leaving some drivers behind. The report also confirms that common EV misinformation remains a barrier, with many drivers still doubting the environmental benefits of EVs despite them being four times more efficient than a typical petrol car.”
She warned that Labour Party government must tackle “prevailing EV myths head on” despite EVA England data finding that an eye-watering and jaw-dropping nine in 10 EV drivers wouldn’t return to petrol or diesel having made the switch to electric.
