RAC reacts to cuts to plug-in car grant that take effect today

Commenting on the announcement that the plug-in car grant has unexpectedly been cut today, and will now only apply to lower-priced electric vehicles, RAC head of roads policy Nicholas Lyes said:

“Ministers seem to talk-the-talk when it comes to encouraging people into cleaner vehicles, but cutting the plug-in car grant certainly isn’t walking the walk. While it’s understandable to focus grants on the affordable end of the market where there’s the best opportunity for greater take-up, the industry has been hit hard by the pandemic and incentives to get consumers to go green remain vital in encouraging the sale clean new cars. The extent to which drivers might delay upgrading their vehicles as a result of the economic effects of the coronavirus is also yet to be seen, which makes the timing of this announcement all the more surprising.

“Even though more models are coming on to the market, our research suggests upfront cost remains a concern to drivers when comparing the cost of an electric vehicle with a similarly sized conventional vehicle. By cutting the grant, the Government may risk people holding on to their older, more polluting vehicles for longer.”