The chancellor says he wants to make motoring taxes 'fairer'
President of the AA Edmund King believes the tax hike"is acceptable if other incentives for the transition to EVs remain in place" but VED"should still be lower than for diesel or petrol vehicles" fearing that"increasing tax rates will slow the road to electrification".
The motoring group says its research showed surging electricity prices were a factor in deterring or delaying over 70% of drivers from going electric.Ian Plummer from Auto Trader agreed, saying:"The chancellor is clearly looking for revenues, but the prospect of additional running costs will drive more would-be buyers away from EVs.
"Drivers can still save £80 every 1,000 miles by going electric, but this hike takes away a big chunk of those savings."Sales of new petrol and diesel cars and vans in the UK will be banned from 2030, although EV sales have slowed in recent months, according to the Society of Motor Manufacturers and Traders.
The number of registrations during the first three months of the year was 102% more than during the same period in 2021, while they fell to 38.4% at the end of October.
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