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Electric Cars Threatened By Budget Cuts

Electric Cars Threatened By Budget Cuts


Buyers set for price shock over electric cars as government grants face cut

People could soon be paying thousands more for electric cars as a result of government budget cuts, it has been revealed.

A report by The Observer says grants towards low-emission vehicles could be reduced – and even axed altogether – if the Treasury is unable to secure emergency funding to make up the difference for the plug-in scheme.

Currently, the government contributes £4,500 towards buying a new car that emits less than 50g/km of CO2 and can cover 70 miles on electric power alone, or £2,500 for those under the same emissions threshold but only capable of delivering up to 10 miles of emissions-free driving.

Should cuts affect the grants, it’s reported that the £4,500 subsidy would drop to £3,500, with the £2,500 incentive axed entirely.

The newspaper also says a £60,000 price limit might be imposed, meaning people wanting to buy a Jaguar I-Pace or Tesla Model S or X would no longer be eligible for the scheme.

Cutting the grants could have a negative effect on the momentum of electric vehicle adoption in the UK. September saw a 23.2 per cent increase over 2017 in year-to-date sales of cars eligible for the plug-in grant, with 40,410 registered.

Last year, the government announced plans for sales of new pure petrol- and diesel-powered vehicles to be banned by 2040, although hybrid vehicles will still be allowed on the market, while last month Theresa May said £106m would be ploughed into zero-emission vehicles research and development to enable the UK to lead the sector.

Interested in electric cars? Check out the Audi e-tron: