Electric car drivers across the country have been backed with £1.5billion in new investment to help millions of petrol and diesel drivers switch to cleaner vehicles.
The Chancellor has confirmed a huge £1.5billion funding package for motorists to support its Electric Car Grant and install more electric vehicle charging points across the country.
Around £1.3billion will be given to additional funding for the Electric Car Grant, which is already backed by an initial investment of £650million.
The incentive helps motorists save up to £3,750 off the price of a new electric vehicle with a list price of £37,000 or less, with more than 40 models eligible for the saving.
Some of the most popular electric vehicles on the market are included in the grant scheme, including the Ford Puma Gen-E, Renault 5, Vauxhall Corsa Electric and Volkswagen ID.3.
The remaining £200million from the Government’s funding pledge will go to continue the rollout of electric car chargers across the country.
There are already more than 86,000 chargers installed around the UK, with drivers being able to make use of a staggering 121,268 connectors.
Electric vehicle owners continue to hope that the Government and private industry will accelerate the development of EV chargers to reach 300,000 chargers by the end of the decade.
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Documents from the Office for Budget Responsibility (OBR) that were published ahead of the Chancellor’s speech stated that the Electric Car Grant would be extended between 2024-2025 and 2029-2030.
This will be done at an average cost of £300million in these years.
Speaking in the Commons, Chancellor Rachel Reeves said the Government wanted to support drivers with a suitable funding boost to turbocharge the uptake of zero emission vehicles.
The Zero Emission Vehicle mandate outlines that manufacturers must have a minimum percentage of sales come from electric cars, starting with a 28 per cent target at the end of this year.
This will continue to rise over the coming years, reaching 80 per cent at the end of the decade and 100 per cent in 2035, when only new electric vehicles will be on sale.
However, experts have noted that these changes are likely being introduced to offset the impact of a new “mileage-based charge”.
Electric car and plug-in hybrid vehicle drivers will be required to pay for every mile they drive, as outlined in the Office for Budget Responsibility’s documents.
Electric car owners will be charged three pence per mile, while hybrid vehicles will be charged 1.5p per mile. This is expected to raise around £1.4billion for the Treasury.
Edmund King, AA president, said: “We recognise that fuel-duty revenue is declining as drivers switch to electric vehicles. The AA is uniquely placed to assist Government in designing a fair and transparent system. The challenge is clear: it must be simple, trusted, and equitable for all road users.
“Getting the timing right is crucial, and there will be concerns that, should pay-per-mile for EVs be introduced too soon, it may put slow down the switch to electric cars.”