Treasury ‘wants to cut electric car grants under cost-saving plans’

Rishi Sunak ‘wants to cut electric car grants under Treasury cost-saving plans’ amid fears the move could undermine the UK’s green credentials ahead of key COP26 climate change summit

Rishi Sunak wants to make the Government’s electric car grants less generous under Treasury cost-saving plans, it was claimed today.

The Chancellor is said to be pushing to reduce the value of the current ‘plug-in’ grant which is worth up to £2,500. 

The grant is designed to encourage people to make the switch to electric vehicles by making them more affordable as the Government looks ahead to its ban on the sale of new petrol and diesel cars by 2030. 

Mr Sunak is reportedly facing Cabinet opposition to the move, with Business Secretary Kwasi Kwarteng and Transport Secretary Grant Shapps in favour of keeping the support as it is.

There are concerns in Whitehall about the message reducing the value of the grant would send as the UK prepares to host the COP26 climate change summit in Glasgow next month.

The Chancellor is said to be pushing to reduce the value of the current ‘plug-in’ grant which is worth up to £2,500

The grant is designed to encourage people to make the switch to electric vehicles by making them more affordable

The grant is designed to encourage people to make the switch to electric vehicles by making them more affordable

The ‘plug-in’ grants have helped support the purchase of tens of thousands of low emission vehicles. 

The Treasury believes that the grant could be made less generous without harming the green vehicle market, according to The Telegraph. 

The department believes there should now be a greater focus on driving the uptake of electric vans and other vehicles as well as on improving electric charging infrastructure. 

Slashing the grants is said to be one of the measures being pursued by Mr Sunak as he tries to right the public finances in the wake of the coronavirus crisis. 

The Chancellor will deliver his autumn budget in the House of Commons on October 27. 

Some in Whitehall are concerned that an assault on green grants could prove counterproductive ahead of the COP26 summit.

World leaders will meet in Glasgow from October 31 to November 12 to try to hammer out climate change solutions. 

The Government is expected to publish its eagerly-awaited strategy for achieving net zero emissions in the UK by 2050 within weeks. 

A Whitehall source told The Telegraph that cutting the ‘plug-in’ grants during a fuel and gas crisis would be a ‘most extraordinary move’.

The source bemoaned slow progress on the publication of the net zero strategy, accusing the Government of ‘nickel-and-diming’ at a time when significant action is needed. 

Read more at DailyMail.co.uk

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