Is the UK ready for the 2030 ban on diesel and petrol cars?
In 2030, the UK plans to ban the sales of new diesel and petrol cars to reach their goal of net-zero carbon emissions by 2050. But, with 2030 being only eight and half years away, is the country and its population ready?
With this in mind, the increasing demand for electric/hybrid cars, there is an even more significant demand for off-street charging stations. Former Conservative minister Lord Herbert recognised the lack of public charging points, for electric vehicles, in June. Trying to find off-street parking that provides a charging station is pretty much impossible, let alone finding off-street parking for petrol and diesel vehicles. Lord Herbert stated in the House of Lords, that “huge numbers of people can’t contemplate buying even a plug-in hybrid, let alone a fully electric car, even where they want to because we don’t have anything like the necessary number of public charging points.’’
If the UK wishes to meet its targets by 2050, the government will need to ensure that charging stations are accessible for all by increasing charging stations. Companies also need to start making plans for their staff by finding ways to help them purchase electric vehicles and providing them with a vast amount of charging stations when they come into work.
Almost all of the vehicle manufacturers around the world now offer an electric vehicle or a hybrid vehicle. Now that they are more accessible, electric cars have become more affordable; however, they are still out of reach for most UK car owners. In addition to the global pandemic causing job losses, salary cuts, in March, the government cut grants from £3,000 to just £2,500 for electric cars; Transport Minister Rachel Maclean suggested that the grants may be removed entirely.
However, companies can start helping their employees via the offering of company cars and salary sacrifice schemes. These options can be desirable due to the benefit-in-kind tax savings from choosing an Electric Vehicle. Typically, all maintenance, road tax, business insurance, and breakdown cover costs are included within the monthly expense, deducted from the employee’s gross salary. This creates savings in income tax and National Insurance Contributions, which can be significant. In addition, while benefit-in-kind (BIK) tax is payable on the car provided if employees select EVs with zero emissions, they benefit from a tax rate of just 1% in the current tax year. Employers, as a result, see monthly savings in NIC and VAT and provide employees with clean, fully maintained vehicles which helps manage their grey fleet risk.
On another note, battery costs have started to decline and is making it a possibility for the costs of electric vehicles to decrease. With battery costs reducing, it will be possible for EVs to become more cost-effective and dominate the automobile industry, proving to be a viable alternative to traditional ICE vehicles. According to research conducted by BloombergNEF, battery prices have seen a decline of 89% over the past 10 years.
What are the options?
As a result of the cost of electric vehicles coming down, you can start to see that more options are coming available. Here are some options to consider when looking to purchase an electric vehicle: