The fleet sector must act now to safeguard the Plug-in Car and Van Grants, the BVRLA says.
The British Vehicle Rental and Leasing Association (BVRLA) is urging stakeholders from across the industry to write to their local MP and ask for their help in securing long-term Government support for the vital grants.
The grant helps to bridge the price gap between electric vehicles and their petrol or diesel counterparts.
According to BVRLA’s 2020 budget submission, the grant reduces the cost of a typical leased EV by around 25% or £100 per month.
The cost of funding the grant is partially offset by the increased VAT returns obtained from more expensive EVs, according to the trade body’s calculations.
It also plays a vital role in making the UK a more attractive market for manufacturers to sell EVs in.
‘Our members are already buying tens of thousands of electric vehicles each year and are helping businesses and individuals across the country to make the leap to zero emission motoring,’ said BVRLA chief executive, Gerry Keaney.
‘By setting these new decarbonisation targets, the Government is in danger of writing a cheque that the fleet sector cannot cash,’ Mr Keaney continued.
‘Businesses are being asked to invest billions of pounds in new electric vehicles and infrastructure over a short timescale. Tax incentives are vital, but so are the Plug-in Grants. They need to be maintained in some form until at least 2025 if we are to deliver the transition that is required.’