UK slashes grants for electric car buyers while retaining petrol vehicle support
The UK government has cut grants for electric car buyers, to the horror of the automotive industry as it tries to rapidly shift away from fossil fuels.
The maximum grant for electric cars was reduced from GBP3,000 to GBP2,500 with immediate effect on Thursday. The government also lowered the price cap for cars eligible for the subsidy from GBP50,000 to GBP35,000.
The cut is likely to be controversial, only a fortnight after the chancellor, Rishi Sunak, extended a generous implicit subsidy for drivers of petrol and diesels by freezing fuel duty.
Electric cars cost more than those with internal combustion engines, but they are seen as a crucial part of meeting the UK’s decarbonisation targets. Other European countries such as Norway, Germany and France subsidise electric cars.