6 January 2022
Government Cuts Plug-In Van Grant
The UK Government’s decision to cut the Plug-in Van Grant funding has been seen by many in the industry as disappointing, particularly as the UK’s LCV fleet is currently lagging cars when it comes to the adoption of electric power in place of internal combustion.
The reduction in grants for small vans of up to 2.5t GVW means that they can now claim back up to £2,500, while larger vans of up to 5 tonnes GVW can receive up to £5,000 in grants, with companies limited to a cap of 1,000 vehicles per year.
While the lowering of the available grant may be seen as lessening the incentive for purchasers, several major brands including Stellantis have re-adjusted their prices accordingly, to ensure that as many of their vehicles as possible are eligible for the remaining grants.
At the same time, a global automotive survey carried out by KPMG UK suggested that three quarters of automotive executives were confident that even if all grants were removed, EV adoption would still be widespread by 2030.