Tax incentive for electric cars

11/12/09

Chancellor Alastair Darling's pre-budget report has yielded a new incentive for electric car users, consisting of a zero percent tax levy on EVs for company car users.

The incentive will operate for the next five years (unless next year's incoming government changes that) and is designed to encourage the development of infrastructure as well as the take-up of electric vehicles. So far there are only 50 electric vehicles registered as company vehicles in the UK out of 1.1 million.

Separately from this, the new automotive council, jointly chaired by Lord Mandelson and ex-Ford engineering boss Richard Parry-Jones, has announced that it will be spending £19 million of government money on low carbon vehicle technologies for the UK supply chain.

The council has previously identified Britain's automotive supply chain as a weak link and an impediment to realising the government's goals of making Britain a major player in the low emission car industry. It has also agreed that its 'key objectives are to help make the UK a compelling investment proposition for the global automotive industry, promote the UK as a base for the development of low-carbon vehicle technologies and to secure a strong UK supply industry.'