Labour could introduce tax breaks for drivers who drive electric vehicle

The new Labour Party government could introduce tax breaks to encourage electric vehicle take up. The Labour Party has been urged to offer electric car tax breaks as a Ford boss warns of 'really challenging problems' for the electric market.

Ford warned that without tax cuts, the UK will not meet its EV targets. Lisa Brankin, chairman and managing director of Ford UK, told BBC Radio 4’s Today Programme that the real issue is that “customer demand isn’t at the same level as the Government mandate”.

She said: “We’re not seeing customers coming and wanting to buy electric vehicles, either cars or vans. We have repeatedly said that we support the Government’s trajectory and we support the ambition the Government has set out. It’s just that there isn’t customer demand.”

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Last night, Business Secretary Jonathan Reynolds confirmed plans that the Government would be looking into updating the Zero Emissions Vehicle mandate. Brankin stated: “The one thing that we really need from the Government is government-backed incentives to urgently boost the uptake of electric vehicles, because without demand the mandate just doesn’t work. With that incentive, company car drivers are actually making the switch to electric well ahead of the trajectory.”

She added: "The really important thing is that the consultation is fast, and that the Government acts quickly as a result of it." Ford previously called for the British government to force carmakers to sell even more electric cars each year.

“Ford believes that figures lower than Department for Transport’s current proposed trajectory will not send a strong enough signal to customers, manufacturers and investors to spur the appropriate transition,” it said at the time. “Furthermore, any lowering of targets will send the wrong signal in terms of charging infrastructure rollout.”

The carmaker did argue that the policy should be subject to review if industry conditions change, according to the government consultation response obtained by the Fast Charge newsletter.