November 2022 Budget Announcement
Unhelpful EV duty raid will turn off drivers
The Chancellor is clearly looking for revenues, but the prospect of another £165 a year in running costs will drive more would-be buyers away from EVs when other incentives are being scrapped and high energy bills are eroding the advantages of going electric.
The 2030 ban on new diesel and petrol sales is looming ahead but measures like this will hardly encourage motorists to switch amid a cost-of-living crisis. An excise duty raid is deeply unhelpful and sends the wrong message if we’re to be serious about getting EVs into the mainstream and beyond the wealthier car buyers who can afford the c.35% “green premium” of EVs over petrol or diesel equivalents. Our analysis shows that drivers can still save £80 per 1000 miles by making the switch to electric, but this move takes away a big chunk of the ownership savings that are still very much needed to bridge what remains a significant purchase cost differential for EVs.
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