The UK government is raising the stakes with audacious moves to combat the soaring costs of electric vehicles (EVs). This is all part of the UK government’s strategy to eliminate petrol and diesel cars from UK roads by 2030. Heidi Alexander, the Minister for Transport, announced that manufacturers will receive more flexibility regarding their annual targets and face reduced penalties, particularly in light of the recent U.S. trade tariffs affecting the automotive industry.
There’s some debate over the size of a new government grant program (potentially hundreds of millions of pounds) to underwrite EV purchases. Yet, Alexander would not validate these rumors. She also stressed the need for government initiatives to create affordability in the electric vehicle space, so more drivers can afford to make the switch.
“In her remarks, Alexander addressed the growing concern about affordability given the steep price tag of electric vehicles. ‘We are going to be making some announcements later this week on how we make it more affordable for people to buy an electric vehicle,’ she stated, highlighting the government’s commitment to reducing financial barriers.”
The UK government has announced £63 million investment to improve charging infrastructure across the UK. This investment will include initiatives to allow residents without driveways to install charge points using “cross-pavement gullies,” funded by £25 million allocated to local councils. Furthermore, larger EV charging hubs can be readily found by drivers, they’ll be strategically signposted from major A-roads, maximising accessibility.
Sales data, meanwhile, continues to illustrate that the transition to electric vehicles is far from the manufacturers’ required thresholds. Even more alarming is the lack of progress. These countries are more than halfway to meeting their 2030 goal of phasing out the sale of new petrol and diesel vehicles. Alexander’s plan is to tackle these major challenges with future consumer-incentivizing announcements.
Richard Fuller MP, shadow chief secretary to the Treasury, criticized the government’s approach, accusing Labour of “forcing families into more expensive electric vehicles before the country is ready.” Edmund King, President of the AA towed the party line and cheered on Alexander’s plans with gusto. As a result, he announced that these measures are “essential” to instill consumer confidence in the transition to electric vehicles.
Alexander provided her personal context. She’d shared that she’s not able to buy an EV, since she lives in a terraced home without off street parking. However, she reiterated her commitment to reduce costs for Americans looking to switch to EVs. “I can guarantee to your viewers that we will be making it cheaper for those who do want to make the switch to an electric vehicle,” she affirmed.