Liberal Democrats Pledge To Cut VAT On Electric Cars To 5%

Liberal Democrats Pledge To Cut VAT On Electric Cars To 5%

Liberal Democrats Pledge To Cut VAT On Electric Cars To 5%

The Liberal Democrats have released their election manifesto, in it they pledge to cut VAT on electric cars  to just 5%…

‘Meet The Challenge Of Climate Change’

In their recently released election manifesto, the Liberal Democrats have pledged to reduce VAT on the purchase of electric cars to 5%. For perspective, it currently sits at 20%. The measure is no doubt a way to help the party ensure that all new cars sales are electric after 2030. It’ll be accompanied by other policies, including significant investment in new charging points; in the form of service stations and residential, on-street infrastructure. Concerning the climate crisis in general the manifesto states that it seeks to, ‘tackle the clean air crisis, meet the challenge of climate change, improve people’s health, stimulate local and regional prosperity and develop British zero-carbon industries with benefits for jobs, growth and exports’.

To understand VAT, simply look at current car prices. If an EV car is selling for £40,000, you’ll currently pay £48,000. Under the Liberal Democrats, this would be reduced to £42,000; a meaningful saving, however you look at it. No doubt the party is arguing that slashing VAT is a great way to achieve price parity between diesels, petrols and EVs; an essential step in terms of promoting mass-adoption of zero-emission mobility.

Plucking Dates From Thin Air? 

All of the established parties in the UK agree that we face a climate crisis; a situation produced by human beings and our dependence on fossil fuels. As a result, they’ve all pledged to invest in electric cars and achieving carbon-neutrality in the future. What they do disagree on, however, is the date by which this should be achieved. The Conservatives are calling for carbon-neutrality by 2050. Plus a ban on the sale of new diesels and petrols by 2040. Labour and the Liberal Democrats, however, want a much earlier ban date of 2030.

There are concerns that politicians, sensing the interest in environmental topics, are pledging to making substantial changes simply to ‘out-do’ their opponents. Or, perhaps, that they’re attempting to placate critics and activist groups without having a concrete and serviceable plan. The fact of the matter is that there’s simply no sign of mass-adoption of EVs being around the corner. Whilst interest is surely rising, they remain exceptionally niche in the UK; making up 2.6% of the market share in 2018. It’s also worth remembering that a very large proportion of that figure is made up of PHEVs i.e. hybrid vehicles. A full transition would require a revolution in car-ownership, manufacturing, the power grid and the massive rollout of charging infrastructure all across the country. Can this be achieved in just over ten years? Over to you, Lib Dems…

General Election 2019: Here’s Where The Parties Stand On Motoring – https://www.autoserveclub.co.uk/blog/general-election-2019-heres-where-the-parties-stand-on-motoring/

Labour Is ‘Committing’ To Electric Vehicles And Charging Infrastructure – https://autoserve.co.uk/motoring-news/labour-is-committing-to-electric-vehicles-and-charging-infrastructure/

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