In a bid to encourage more electric car sales, Chancellor Rachel Reeves has launched two EV incentives in the Labour Government’s first budget.
In the Labour Government’s first budget, Chancellor Rachel Reeves has announced two new incentives to encourage more Brits to make the switch to an electric car.
Whilst many drivers will remember the October Budget for the sharp rise in fuel duty, impacting petrol and diesel prices, and a variety of tax increases, the Government has also introduced a new measure to keep the cost of running an electric car lower than other types.
Announcing the budget in the Commons, Chancellor Rachel Reeves highlighted that the Government will extend the current company car tax rate on EVs until 2028 and make electric vehicle owners pay a different rate of tax than petrol and diesel car owners.
She explained: “I will maintain the incentives for electric vehicles in company car tax from 2028 and increase the differential between fully electric and other vehicles in the first year rates of Vehicle Excise Duty from April 2025.
“These measures will raise around £400 million by the end of the forecast period.”
Previously, the Government has imposed a number of incentives in a bid to encourage motorists to make the switch from petrol or diesel cars to fully-electric alternatives.
Read more: Express
