Financial incentives required to increase EV demand, says Baroness

Financial incentives are required to promote new and used electric vehicles among drivers.

That’s according to Baroness Parminter, chair of an inquiry into the present state of the electric vehicle market in England and Wales.

The comments come following the publication of a House of Lords committee report titled ‘EV strategy: rapid recharge needed’ which has cited ‘a combination of higher purchase costs, insufficient charging infrastructure and mixed messaging’ as reasons behind drivers not making the switch to a battery-powered vehicle.

Speaking to Car Dealer Magazine, Baroness Parminter said: “If there was a commitment to immediately consult on the necessary fiscal incentives for both new cars and secondhand cars, that would be a win.

“And in the Budget saying we will equalise VAT on home and public charging, that would be a massive signal of intent.

“And that’s what we need from this government because the messages have been mixed.

“When Rishi Sunak rolled back on the deadline last year he used the term “getting to net zero is going to be hard” – that’s not what the public needs to hear.

“They need to see the government putting some skin in the game on this now. And the VAT equalisation in the Budget would do that.”

The report suggests that used electric car sales could be helped by introducing a ‘battery health standard’ and reducing the VAT rate for public charging to five per cent. It added that consumers need more information and a ‘trusted source of information’ with concerns being raised about the portrayal of EVs in the media.