- This topic has 6 replies, 3 voices, and was last updated 9 months, 3 weeks ago by
.
- Topic
.Govs genius master plan to cut emissions/encourage people to buy EVs
what can go wrong?
The zero emission vehicle (ZEV) mandate
is a UK government policy that requires car manufacturers to sell a minimum percentage of zero-emission vehicles:
· 2024: 22% of sales must be zero-emission vehicles ( as of Nov the cars sold were just 17.9% leaving a shortfall of 65,702 fully elec evs they stil havea few weeks to go but Dec is a slow sale month and will make little difference
· So per unit below the above set target the manufacturer as it stands today has to pay £15,000 that’s approx £985+ million in uk car industry fines ( exact figure will be better known by Jan but not expected to differ by much)
· 2030: 80% of sales must be zero-emission vehicles
· 2035: 100% of sales must be zero-emission vehicles
………………………………………………………………………………………….
Road tax, or Vehicle Excise Duty
Electric, zero or low emission cars registered on or after 1 April 2025 will need to pay the lowest first year rate of vehicle tax set at £10 from 1 April 2025. From the second tax payment onwards, people will pay the standard rate. This will be £195.
…………………………………………………………………………………………………………………….Additional rate (expensive car supplement).
New electric and zero emission vehicles registered on or after 1 April 2025 with the list price exceeding £40,000 will attract the standard rate, plus the expensive car supplement for the first 5 years from the start of the second licence. Owners of cars with a list price of over £40,000 are required to pay an extra £410 on top of their standard VED rate.
…………………………………………………………………………………………………………………………· Chuck into the mix the huge cost of public charging and the vast amount of people who are unable to home charge
· What can go wrong?
· ………………………………………………………………………………….
· The house building plans are also doomed to failure imo
· Will keep that for a later post
Thoughts?
- Replies
The government has already suggested that the ZEV mandate targets need to change (what a surprise – shame they were the last to realise 🤔) and there is a fast track consultation to recommend how to revise them. They haven’t yet woken up to the fact that the 2030/35 deadlines are completely unachievable, so that is a can kicked down the road for now.
Just as you can’t force people to buy cars that they don’t want by imposing penalties on manufacturers, you can’t force house-builders to build houses that there aren’t enough buyers for. There is no doubting that we need the houses (in fact we need far more than the target for both current U.K. residents and the additional migrants that will undoubtedly come to the country over the next 5 years) but how many of these people can afford to buy houses? Most potential first time buyers don’t stand a chance of affording property in major swathes of the country, existing homeowners with fixed term mortgages will see large payment hikes when their term ends, buy-to-let landlords are offloading properties rather than adding to their portfolios due to tax changes, and local authorities don’t have the money to buy them to add to their social housing stocks.
It’s all basic supply and demand, which this lot seem not to have even the most basic grasp of.
The government has already suggested that the ZEV mandate targets need to change (what a surprise – shame they were the last to realise 🤔) and there is a fast track consultation to recommend how to revise them. They haven’t yet woken up to the fact that the 2030/35 deadlines are completely unachievable, so that is a can kicked down the road for now. Just as you can’t force people to buy cars that they don’t want by imposing penalties on manufacturers, you can’t force house-builders to build houses that there aren’t enough buyers for. There is no doubting that we need the houses (in fact we need far more than the target for both current U.K. residents and the additional migrants that will undoubtedly come to the country over the next 5 years) but how many of these people can afford to buy houses? Most potential first time buyers don’t stand a chance of affording property in major swathes of the country, existing homeowners with fixed term mortgages will see large payment hikes when their term ends, buy-to-let landlords are offloading properties rather than adding to their portfolios due to tax changes, and local authorities don’t have the money to buy them to add to their social housing stocks. It’s all basic supply and demand, which this lot seem not to have even the most basic grasp of.
Well put
Much is still uknown at this point but I suspect going forward the main hurdle to be met is that there may well be little appertite for builders to want to build afforable housing on such scale if there is less profit in doing so.
My biggest worry, as a tax payer, is that rather than admit that the targets are unachievable and alter them, they will try to distort the market through subsidies which are, of course, funded by tax payers.
I suspect that they might review the decision to apply full road tax to EVs, but that loss of revenue will need to be found from elsewhere.
Direct subsidies are never a good thing IMHO. If something can’t sell on its own merits then it’s not good enough or affordable enough, and why should all tax payers have to fund something that only a proportion want?
The bigger problem though is that subsidies tend to benefit the manufacturers rather than the consumers. Many will recall that when the last government reduced the subsidies on EVs, manufacturers magically managed to drop their prices by similar amounts. Equally, in the housing industry, ‘Help to Buy’ was known in the trade as ‘Help to buy housebuilders yachts’ as all it did was push up asking prices, resulting in bigger profit margins. There are many reasons why the ‘free market’, where supply is driven by demand and nothing else, tends to be favoured by economists.
I thought this government stated they were ready to go, go were?
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
The carmakers have launched a rearguard lobbying effort to persuade the UK government to relax the mandate, but now find themselves pitted against car charger companies, fleet owners and environmental campaigners who argue that climate targets and billions of pounds of investments will be under threat if the UK government backtracks.
I am still surprised with huge fines looming that ALL APs at this point have not been dropped to Zero
Simple math imo
In my humble opinion they need to sort out the public charging point and address the extortionate high EV charging cost, they short up during the energy crisis, however cost have significantly decrease however EV charging cost have stayed high.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
- You must be logged in to reply to this topic.