Government has cut Electric Car grant to £2,500

Government has cut Electric Car grant to £2,500

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Government has cut Electric Car grant to £2,500

The Government has decided to cut the electric car grant from £3,000 to £2,500. They have also excluded vehicles that cost more than £35,000 from the scheme. The grant will not longer be available for higher-priced vehicles which they state are “typically bought by drivers who can afford to switch without the subsidy from taxpayers”.

Popular electric models such as the Tesla Model 3 and Hyundai Kona Electric 64kWh will no longer be available for the grant. However, some good news. Tax incentives, including the favourable company car tax rate, will remain the same.

Long Term Plans

Transport Minister Rachel Maclean said: “We want as many people as possible to be able to make the switch to electric vehicles as we look to reduce our carbon emissions, strive towards our net-zero ambitions and level up right across the UK.

“The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.

“We will continue to review the grant as the market grows.”

The grant was first introduced in 2011 and has supported 285,000 vehicles to date.

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