Labour face urgent demands for car tax changes to save drivers over £100 every month
New car tax changes which will see some owners save over £1,000 every year in running costs have been demanded by several in the motoring industry.
The Labour Party is facing demands from motoring experts for urgent car tax changes to help certain motorists save over £100 every month just hours after the General Election concluded.
Car specialists and electric vehicle experts have demanded a reduction in EV charging VAT rates to help boost the take-up of zero-emissions vehicles.
Under current rules, electric car owners topping up at public chargers pay 20 percent VAT on electricity compared to just five percent at home.
According to Cord, a leading EV charging company, the average driver would spend an extra £92-£138 a month if they solely relied on public charging.
They warned paying this fee would effectively obliterate any savings over switching from petrol and diesel vehicles.
Cord co-founder Paul Tomlinson said: "For these targets to turn into action, we have to make EVs a natural and affordable choice for drivers, not a luxury available to the few.
"The best way to do that is to make sure that as many people as possible can access home charging, which is by far the cheapest way to drive.
"Off-peak tariffs can make driving cost just £17 a month - around the cost of a premium Netflix subscription. But relying on public charging rockets that up to well over £100."
There had been widespread calls to cut the charge ahead of the election, with the Society of Motor Manufacturers and Traders (SMMT) and AA previously urging politicians to embrace an update.
However, both main political parties refused to address VAT rates on EV charging during the campaign despite Labour’s pledge to reinstate the 2030 petrol and diesel car ban.
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The calls to action were issued just hours after Sir Keir Starmer and the Labour Party swept to power and will be one of the first things on their in-tray.
A recent poll from Carwow found that one-third of motorists want to see lower VAT on public electric charging.
This was one of their major demands alongside calls for more incentives to reduce the upfront purchase price of EVs and grants for home charger installation.
Iain Reid, head of editorial at Carwow explained: "Electrification is the future, and while accelerating the rollout of public charging infrastructure is critical, there are more factors to consider if EVs are to be accessible and appealing at a mass market level."
Thom Groot, CEO of The Electric Car Scheme, has also piled on the pressure for VAT fees to end.
Research from the group identified that affordability is the biggest barrier to getting an electric vehicle for 68 percent of Britons.
Meanwhile, 53 percent admit to feeling that they cannot afford to cut their carbon footprint.
Mr Groot added: "If Labour is going to have any chance of fulfilling the laudable, but ambitious, reintroduction of the 2030 ZEV mandate, they need to do three things right away. Extend low BIK rates until 2035 at five percent.
"Lower the VAT on public charging to five percent to bring it in line with the cost of electricity at home. And avoid the temptation to impose tariffs on affordable EVs from outside the UK. They don't do us any favours in terms of reaching Net Zero and don't solve other problems."
