Peers in the House of Lords have expressed their support for demands for fresh government incentives to lower the cost of electric cars, cautioning that the Government needs to "put its foot on the accelerator" for the UK to achieve its self-imposed target for net zero by 2050.
A recent report from the House of Lords Environment and Climate Committee has been released, following an extensive inquiry into the Government's progress on the EV transition. Titled 'EV Strategy: rapid recharge needed,' the report emphasises the need for the government to act more swiftly, particularly in addressing the high cost of new EVs compared to traditional petrol and diesel cars. The report, following recent industry figures indicating a decline in EV registrations among private buyers, highlights the potential hindrances to widespread electric vehicle adoption, including high prices, insufficient charging infrastructure, and conflicting messaging.
In addition to endorsing calls for a new set of incentives for electric car purchases, the Lords report identifies three key areas where the government should take action to advance its strategy. The first area is consumer confidence, where the Lords suggest that the Government explore options to encourage the sale of second-hand electric cars, potentially by introducing a 'battery health standard' to instil confidence in prospective buyers of used EVs.
The report also urges the government to revamp road tax, providing a clear indication of future motoring costs, and reduce the VAT rate on public charging from 20% to 5%, aligning it with domestic charging costs.
The second focal point of the report is expediting the rollout of charging infrastructure. The Lords recommend that the government consider a potentially controversial 'right to charge' measure for tenants and leaseholders in multi-occupancy buildings. They also call for a consultation on mandating EV charge points in workplaces with designated parking.
The third area of emphasis is increased industry support. The Lords advocate for additional efforts to enhance UK manufacturing and innovation in EV technologies, along with accelerated investments in EV and battery recycling.
Baroness Parminter, Chair of the inquiry, emphasised, "Surface transport is the UK’s highest emitting sector for CO2, with passenger cars responsible for over half those emissions." She added, "The evidence we received shows the Government must do more – and quickly – to get people to adopt EVs. If it fails to heed our recommendations, the UK won’t reap the significant benefits of better air quality and will lag in the slow lane for tackling climate change."