Commentary | Budget announcement
On electric vehicles, the Chancellor is driving with the handbrake on. The Office for Budget Responsibility estimates that there will be 440,000 fewer electric cars on the road thanks to the introduction of pay-per-mile charging from 2028. This risks sending the wrong signal and just 320,000 of these sales are offset by moves to make EVs more affordable, such as raising the Expensive Car Supplement from £40,000 to £50,000.
In the OBR’s own words, this new charge is likely to reduce demand for electric cars as it increases their lifetime cost. We expect the industry – manufacturers in particular – will have to step up and work harder to counteract this new tax. Does she want people to buy electric cars or not?”
Expensive Car Supplement (ECS) | Autotrader analysis
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