If you’re thinking of buying a new electric car worth up to £37,000, the UK government has offered to knock up to £3,750 off the price. The measure adds up to £650 million in grants for people to buy EVs (electric vehicles), but as a researcher who studies transport policy and climate change, I think this money would be better spent subsidising e-bikes.
Numerous questions surround the new government policy. Might people who can afford a new car buy one anyway, without the 10% discount? Might car dealers simply reduce the discounts they offer by a similar amount? Given the 20% VAT on an EV, doesn’t a sale actually result in a 200% immediate return for the government? And isn’t this mainly a bung to car manufacturers and company fleets?
The grants come on top of financial assistance for replacing cars, vans, taxis and motorbikes with electric options, announced in February – £120 million in total, including £500 grants for e-motorbikes. But almost no subsidies are available for two-wheeled, pedal-assisted EVs: e-bikes and e-cargo bikes.
