A feasibility study commissioned by minsters on ways to accelerate the uptake of electric vehicles has suggested making new petrol and diesel cars £1,500 more expensive.
The report, published by the Department for Transport this week, said the funds generated by the additional cost of motors with internal combustion engines could be used to subsidise battery vehicles, which are generally more expensive to buy.
But the motor industry’s trade body has blasted the suggestion, saying such a move would penalise those who can’t afford electric cars currently, or don’t have the facilities to charge them.
The report outlines the key areas for the Government to tackle the slow adoption to electric cars.
This includes raising awareness of EV benefits, improvements to the public charging infrastructure, changing consumer attitudes towards battery cars with limited ranges and consideration of financial factors to make plug-in models more attainable.
For the latter, the study produced by the Behavioural Insights Team and the Transport Research Laboratory has suggested higher VAT rates for petrol and diesel cars, or forcing buyers of these models to pay towards making electric cars cheaper.
This would see the cost of new cars with internal combustion engines likely increase by between £500 and £1,500.