Prime Minister Andy Burnham has been issued with a warning from one of the most popular car brands in the UK over the future of the Government’s electric car strategy.
Sir Keir Starmer officially resigned as Prime Minister earlier this morning following a final Downing Street speech and a meeting with King Charles.
After meeting with the King shortly after midday, Andy Burnham was confirmed as the new Prime Minister, with mounting pressure on the former Manchester Mayor to make immediate decisions.
Popular manufacturer Polestar has called on the new Prime Minister to take a “bold approach” when it comes to the UK’s approach to electric vehicles.
Under Sir Keir Starmer, the Government reversed the decision made by previous PM Rishi Sunak to ban new petrol and diesel car sales from 2035, moving it back to the original date of 2030.
Matt Galvin, managing director of Polestar UK, is now urging Mr Burnham to follow in his predecessor’s footsteps to ensure the transition to electric cars is supported.
He has called for the new Government to maintain the 2030 phase-out date of new petrol and diesel vehicles, as well as cutting VAT on public chargers.
At present, drivers face a 20 per cent VAT rate when charging in public, although this is only five per cent if they have the facilities to charge at home.
A court ruling recently stated that this should be changed, although HM Revenue and Customs announced its intention to block the potential measures.
Andy Burnham is also being told to introduce grants and a scrappage scheme to stimulate the second-hand electric vehicle market.
This is something that Polestar has called for in recent years as a way to bring prices down for customers and present a greater and more affordable range of vehicles to a larger proportion of the population.
The Government previously ran a scrappage scheme over a decade ago by offering drivers £1,000 to scrap older vehicles for environmentally friendly models.
Labour’s current Electric Car Grant has so far helped more than 140,000 drivers make the transition to EVs since it launched just over a year ago.
It allows drivers to save up to £3,750 off the price of a new electric car with a list price of £37,000 or less, although it does not apply to used vehicles.
Mr Galvin acknowledged what Andy Burnham had done as Manchester Mayor for zero emission transport and air quality, noting that he could do the same on the national stage.
He added: “Nationally, the country is reaching a tipping point for EV adoption. With second-hand EV sales growing, the new Government must accelerate this by stimulating the pre-owned market through grants and a scrappage scheme for the most polluting vehicles.”
Mr Galvin also called on the Government to stop the introduction of electric vehicle taxation until EVs make up the majority of cars on the road.
This includes the controversial Electric Vehicle Excise Duty (eVED), which will see EV owners charged 3p for every mile they drive, while plug-in hybrid owners will pay 1.5p.
It also remains to be seen who Andy Burnham will select as his Transport Secretary and Energy Security and Net Zero Secretary, if Heidi Alexander and Ed Miliband are replaced.
As Mr Burnham prepares to announce his cabinet, changes could be made to certain positions that could impact the future of electric vehicle policy across the UK.
