Drivers will be left 'at risk' by change coming from tomorrow in Budget
A change coming under the Labour Party government in the Budget from Chancellor Rachel Reeves could put motorists at "risk." Drivers have been warned Labour Party changes could "stall" a transition from petrol and diesel to electric vehicles (EVs).
"We’d like to see existing BIK and salary sacrifice incentives to support new EVs maintained, new support introduced to help drivers able to afford new and used EVs under £40,000, and a proactive and transparent approach to communicating future changes in road pricing and taxes," Ian Plummer, commercial director at AutoTrader, said.
“Without additive supportive financial measures, the EV transition risks stalling.” Denis Watling, Managing Director at ChargeGuru UK, said: “We also hope that the various financial advantages for those people making the switch to EVs remain in place; including zero VED, lower BIK rates for company car drivers and effectively 'no' fuel duty paid.”
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Chancellor Rachel Reeves is expected to unleash up to £40 billion of tax rises in the Budget tomorrow (Wednesday, October 30), while Prime Minister, Sir Kier Starmer says that short-term pain is needed to end the decline of the previous Conservative Government.
“I will defend our tough decisions all day long,” Starmer said yesterday (Monday, October 28). “It is the right thing for our country and it is the only way to get the investment that we need.” Ashley Tate, managing director of Allstar Chargepass UK, says that the UK’s businesses are “bracing for major changes – many of them unwanted”.
“For the UK’s fleets and fleet operators, it is yet another period of deep uncertainty, during a critical period of change and transition,” he added. “There seems to be general consensus that the freeze on fuel duty that began in 2011, and the extension of the temporary fuel duty cut from 2022 will come to an end, putting £2bn back in the budget at the expense of both poorer drivers and larger fleets.
“The extra 5p charge on every litre of petrol will quickly add up to thousands of pounds when they are refuelling large vehicles that are constantly on the move, such as delivery vans.”