What Does The 2020 Budget Mean for EV Drivers

 

The chancellor has announced today that they will make it cheaper for ordinary road users to purchase electric vehicles. The Chancellor has said “As well as taxing pollution we will invest and cut taxes on clean transport”. To help the Government’s promise for the UK to be zero carbon by 2050. Along with this Mr Sumak has promised a £300 million investment in tackling nitrogen dioxide emissions in towns and cities in England.

The plug in grant that already applies to the purchase of new Electric vehicles will be extended until 2022/3, although it has been reduced to £3,000 from £3,500. Making vehicles like the all electric Nissan Leaf very appealing, especially if you consider leasing an electric car. Unfortunately, it does now exclude Electric vehicles priced over £50,000.

The government have promised £500 million to support the rollout of new electric charging hubs to fulfil a promise that all EV drivers will be within a 30 mile radius of a charging station. This will mean that people considering an EV will not need to fear a poor charging infrastructure. Also £900 million will be invested in nuclear fusion, space and electric vehicles, although the budget did not specify the amount allotted for each.
As expected the chancellor rubber stamped the plan to slash the benefit in kind rates for people purchasing zero emission cars through company car salary sacrifice schemes. Meaning that zero emissions vehicles will carry a BiK rate of 0% in 2020/21, 1% 2021/22 and 2% 2023/24. This will apply to vehicles registered before April 6th 2020 as well as new EV’s. It will mean that company cars become an attractive option again with some employees saving 30-40 % of their monthly personal car cost.

New research from Drive Electric has shown that eight out of ten motorists would be interested in purchasing an electric car under the new circumstances. This is great news for the environment and working towards the aim of the UK becoming Carbon neutral by 2050. This coupled with the fact that the sale of new cars and vans that use petrol or diesel will be banned in the UK from 2035 means that most people will be choosing an electric car for their next car.

Luxury Vehicle Tax which has been applied to ALL vehicles costing over £40,000 since 2017 will no longer be applied to Zero Emission vehicles.

All of this means there has never been a better time to consider and electric vehicle or a plug in hybrid for your next vehicle. Leasing your electric or hybrid car will make the transition easy and affordable. Get in touch if we can support you through the journey of changing to electric, from finding the right car for you to advice on charging and money savings that might apply to yo

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