Motoring journalist Quentin Willson supported by the RAC is today calling for the government to suspend VAT on electric cars to further stimulate consumer demand and encourage investment in the UK’s green automotive industry.
The call is made from Willson’s Drive the Future green motor show held this week at Motorexpo in London’s Canary Wharf. A World first, Drive the Future is the only motor show where ordinary motorists can ride and drive in electric, hybrid and high mpg cars, absolutely free.
Willson says: “While the Government gives £5,000 grants for EVs, they’re still far too expensive. Clawing back thousands of pounds of that grant in VAT isn’t helping. We need to create demand among consumers and confidence for investors. The UK must lead the World in green car technology before the Chinese beat us to it.”
Suspending VAT on electric car sales would reduce some showroom prices by as much as £5,000 and bring the cost of EVs closer to conventional cars and effectively doubling the incentive to electric car buyers up to £10,000 off. For example, suspending VAT on Vauxhall’s ground-breaking range extendable Ampera, would make its price comparable to a 2.0 litre Ford Mondeo.
So far this year only 500-odd EVs have been sold in the UK. This number needs to rise significantly to develop the EV industry. Willson says that if the Government is really behind de-carbonising road transport, suspending VAT would send a clear signal to buyers, car makers and investors that new tech cars such as electric models are here to stay.
Adrian Tink, strategist at the RAC, says: “This is about making green cars more affordable, creating jobs, cleaning our air and giving drivers’ confidence to make more fuel-efficient car-buying choices. The RAC strongly support this call for action.”
Drive the Future is a unique free ride and drive green motor show held at Motorexpo in London’s Canary Wharf from 6th to 12th of June. The RAC are sponsors of the ride and drive route which allows members of the public to drive EVs, hybrids and high mpg cars for the first time.
