Following previous announcements to bump up company car tax on Ultra-Low Emission Vehicles (before a massive reduction in 2020), the government have further announced that they will also be reducing the grants for electric vehicles. This will include the removal of any grant for Plug-in Hybrids (sub-70 mile range electrics) for any order accepted after 9th November. There will still be a partial bursary for fully electric models but prices are expected to go up slightly with grant entitlement falling from £4,500 to £3,500.
The Department for Transport argue that this is a reflection of the reduction in cost for new electric models, but many suppliers, including ourselves, see it as a step backwards in their plan for a low-emission future.
Rather than bringing forward opportunities to ‘go green’, the government’s stance has consistently failed to support this vision for a sustainable future, despite vowing to aid research into electric vehicles. We believe that introducing ULEz (Ultra-Low Emission Zones) will make it very difficult to justify this decision, and the decision to postpone the lowering of Company Car tax to 2020, with the public being penalised for the expensive price of the technology in the short-term.
Whilst the overall news is not great, it does mean that there are currently amazing offers on plug-ins and electric cars whilst dealers are trying to move stock before the 9th November deadline. Ask Driverline, they’ll be able to help you access these deals. (0300 302 0626)
Tags : company car, electric cars, Green Motoring, Salary Sacrifice Car