Peter Vosper: You could get a whopping discount on these cars...

After increased pressure from motor manufacturers and dealers the government has announced support of up to £3750 to promote the sale of electric cars in Britain.

The discount will apply to electric vehicles costing up to £37,000, with the most environmentally friendly vehicles getting the largest reductions, the Department for Transport (DFT) said.

Carmakers can apply for funding from Wednesday this week, with the RAC saying discounted should start to be in showrooms “within weeks “. Under the scheme, discounts will range between £1500 and £3750, and buyers will be able to claim a discount at the dealerships. The grants to lower the cost of EVs will be funded through a £650 million scheme and will be available for three years.

Dealers and manufacturers have consistently told the government that the UK needs more charging points to spur people to make the move to electric. Steve Caitlin, Managing Director of Vauxhall, welcomed the government’s action but increasing customer demand and creating more charging points were two areas that needed actions. In terms of the number of electric vehicles sold “he said “The target this year is 28%. At the moment we are running at 21.6% as an industry.”

Mr Caitlin also highlighted the government’s target of going from 82,000 charging points to 300,000 by 2030. “So, 40% of households in the UK don’t have a driveway, therefore, they’re less likely to have a home charger and, therefore, less likely of course to buy an electric vehicle on that basis.”

This column has regularly reminded the government that they also committed to reduce the price of VAT charged at public charging stations to the 5% home users pay and have clear displays of the amount cha cost of charging. It can cost as much as 10 times more to charge your electric vehicle at public charging stations and these are the very people this government need to support.

At the weekend Transport Secretary, Heidi Alexander said the government would invest £63 million to fund EV charging points. This is necessary but is it enough?

Drivers who can have a wall box charger at home are those to whom buying an electric vehicle make most sense as they save most money compared with petrol or diesel cars by charging on the cheapest tariff overnight.

The government said “The discount means that zero emission cars are now cheaper to buy and run than ever before, and come on top of preferential tax rates, delivering real savings for working families.”

With the private new car sales struggling this move will be welcomed by both the industry and new electric car buyers and coupled with the offers currently available and the new 75 registration plate in September, mean a boost to both consumers and the industry.

It will also bring in  additional healthy VAT income for the government.