U.K. Slashes EV Subsidies for Second Time in Less Than a Year
U.K. Slashes EV Subsidies for Second Time in Less Than a Year
(Bloomberg) --
The U.K. is reducing electric vehicle grants, the second cut in nine months, as the government looks to rein in spending.
From Wednesday, drivers in Britain can expect grants of as much as 1,500 pounds ($1,987) on cars that cost less than 32,000 pounds, the Department for Transport said, with about 20 models continuing to receive subsidies. The change means the incentive has now been halved in the space of less than a year.
The decision will make funding to go further and allow more people to make the switch to EVs after sticker prices have come down, the government said. The Society of Motor Manufacturers and Traders said lowering the cap is a setback to the country’s plans to phase out internal combustion powered cars by 2030.
“Slashing the grants for electric vehicles once again is a blow to customers looking to make the switch,” said Mike Hawes, the SMMT’s chief executive officer. “We should be doubling down on incentives -- other global markets are already doing so whereas we are cutting, expecting the industry to subsidize the transition.”
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