Some unwelcome news today for fleets that are looking to buy EVs in the near future – the Government has suddenly and without notice cut the grants available to support their purchase.
The new measures mean that the car grant is now only available for cars costing less than £32,000, and falls to 35% of RRP up to a maximum of £1,500.For light commercial vehicles, the grant has fallen to £2,500 for vans under 2.5 tonnes and £5,000 for vans 2.5-3.5 tonnes – or again, 35% of RRP. There is also a ceiling of 1,000 LCV grants for each fleet, although this doesn’t apply to leasing companies.
As long as any current car and van orders have already been logged with the manufacturer, the previous grant arrangements should apply but it is probably worth calling your dealer to ensure that this is definitely the case.
We’ve criticised previously the abrupt nature of these changes – the Government should be providing as much stability as possible around its policies when it comes to EV adoption – and this latest announcement, just 10 days before Christmas, very much illustrates why. While we understand there is not an unlimited pot of money available and grants will fall over time, the suddenness and relatively large reduction creates confusion and uncertainty at a time when businesses are taking electrification ever more seriously.
Further details will be provided as and when we have updates.