UK General Election Results: What does it mean for the Electric Vehicle Industry?
As the dust settles on the 2024 UK General Election, it’ll be a Labour Government handed the keys to No.10. With all new Governments comes change, so what will this mean for the uptake in electric vehicles across the UK, and what support will be available?
Ban of new petrol and diesel vehicles by 2030
One element of Labour’s manifesto is to restore the ban on the sale of new petrol and diesel vehicles to 2030, also known as the ZEV mandate. The goal of decarbonising Britain’s roads was accelerated with the introduction of banning the sale of ICE (internal combustion engine) vehicles, however this progress was slowed in September last year when the then Prime Minister Rishi Sunak pushed the ban back to 2035.
The incoming Government has outlined plans to reinstate the ban to 2030, which will promote a faster transition to sustainable transport. The new Labour Government also plans to accelerate the roll out of electric vehicle (EV) charge points, giving assurance to both car manufacturers and drivers alike that the transition will be supported by a nationwide, robust charging network.
The renewed ZEV mandate will certainly speed up the adoption of electric vehicles, but many still voice concerns about the accessibility of being able to purchase an EV. Electric vehicles still command a slightly higher price than their petrol counterpart, however that gap is closing, and price parity is expected very soon.
In addition to this, Labour plan to support buyers of second-hand electric cars by standardising the information supplied on the condition of the batteries. Concerns about quick battery degradation and high replacement costs are common among EV sceptics, so increased transparency on the condition of second-hand EV batteries should help buyers feel more confident in the financial soundness of their purchase.
Another consideration for potential EV drivers is the ongoing running cost of the vehicle. On average, it costs £528 less to run an electric car vs petrol car. So, whilst the upfront cost of an electric car might currently be higher than its petrol or diesel counterpart, the reduced cost to run an EV throughout its lifetime can lead to considerable savings for EV drivers. Additionally, drivers do not currently have to pay road tax for their EVs, an average saving of £190 per year. There are also no charges for electric cars in the London Ultra Low Emission Zones, which were expanded in August 2023.
Supporting the EV charger rollout
Whilst it is encouraging that we are moving towards a future where zero emission vehicles will be the norm, this also creates an even more pressing need for the UK to develop a sufficient network of EV chargers – range anxiety (fear of running out of charge) remains a barrier for some considering the switch to an EV.
To combat this, the government must make the installation of EV charge points more financially accessible. There are already EV charging grants available for areas such as workplaces, residential properties and state-funded educational institutions. The purpose of the grants is to provide financial support towards the installation of electric vehicle charge points, encouraging businesses, landlords, and other organisations to offer EV charging within their car parks.
It is worth noting that the application closing date for all the grants is 31 March 2025 at 11:50pm, so for those who wish to apply, the time to act is now.
A note from EVC’s CEO:
“With the reinstatement of the ZEV mandate returning to 2030, we will hopefully see an accelerated transition to decarbonising UK roads. At EVC, we will be assisting businesses and the public by providing a nationwide, accessible charging network.
For this transition to EVs to be a success, there needs to be further reductions in the cost of purchasing an EV
and it would be great to see the new Government offer subsidies to drivers looking to make the switch, providing accessibility for all.
Another easy win for the Government would be to reduce the VAT on public EV charging. It’s currently charged at 20%, but a reduction down to 5% will greatly help those currently undecided whether their next car should be electric”
Nick Ballamy | CEO | EVC
As the new Labour Government takes charge, the renewed commitment to a 2030 ban on the sale of new petrol and diesel vehicles could be transformative for the UK’s automotive industry. This pledge, paired with increased support for EV charging infrastructure and buyer incentives, should make electric cars more accessible to the UK’s general public.
With increased transparency around second-hand EV purchases and a nationwide push for more charging points, the barriers to EV adoption are steadily being dismantled. While the initial costs may still be a consideration for some, the long-term savings and environmental benefits make a compelling case for the switch.
Overall, it is clear that the new Labour Government has ambitious plans to propel the UK forwards on its journey to Net Zero, aiming to transform the UK’s automotive industry by enabling mass adoption of electric cars. Ultimately, the success of this transition will hinge on sustained investment, innovation, and education, and only time will tell if these efforts will be enough.
As the Labour Party states in its Manifesto, ‘Rebuilding Britain means modernising our transport infrastructure’ – a challenging but essential task if the UK is to meet its Net Zero goals.
