Asked by
To ask His Majesty’s Government, further to the report by Fair
Charge Driving Away from Fossil Fuels, published on 5 July, which
found that if there were parity in purchase price and running
cost, 100 per cent of drivers would choose electric rather than
diesel or petrol cars, what steps they are taking to ensure that
price parity is reached as soon as possible.
The Parliamentary Under-Secretary of State, Department for
Transport () (Con)
My Lords, while the upfront purchase price for electric vehicles
remains higher than for their petrol or diesel equivalents, in
many cases these vehicles are cheaper to own and run. Generous
tax incentives are in place, which, alongside fuel and
maintenance savings, reduce the total cost of ownership.
(LD)
My Lords, the Fair Charge report highlighted the discrepancies in
VAT for private and public EV charging. As energy prices rise,
the discrepancy becomes even greater in real terms. There is a
realistic danger that EVs will be seen as too expensive, although
the Government, of course, get a greater income from tax as
energy prices have risen. I realise it is difficult for the
Minister to know what government policy is likely to be later
this week, but will she undertake urgently to press whoever
happens to be running the Treasury to reduce VAT on public charge
points to 5%, in order to encourage EV take-up among all sections
of society?
(Con)
I am very happy to outline what government policy is. As the
noble Baroness will know, and as is always the case when taxes
are referred to, all taxes are kept under review. It should be
stressed that the reduced VAT on domestic supply reduces bills
for households by £5 billion a year. Most people do not charge
their electric vehicles exclusively at public charge points.
However, I accept that that discrepancy exists and, as I said, we
keep taxes under review.
(CB)
My Lords, does the Minister believe that the UK strategy on
battery production is still viable, particularly given the recent
media reports related to Britishvolt and the decision to move the
production of electric Minis to China from Oxford? Does that show
a loss of confidence in the strategy?
(Con)
I do not think it is a loss of confidence in the strategy. The
Government’s intention is that the UK remains at the forefront of
EV manufacture, innovation and batteries; that is why we have the
Faraday fund and the automotive transformation fund. All these
elements are really important, but I accept that some companies
will come into the market, and some will leave. There will be
some flux, but at the moment, we are not concerned.
(Lab)
My Lords, that sounds like a very laissez-faire attitude. What
discussions have the Government had with BMW about this very
unfortunate decision?
(Con)
As far as I am aware, the Department for Transport has not had
any discussions with BMW about this very unfortunate decision.
However, I will inquire with colleagues in BEIS as to whether
they have. But, as I say, there are always changes within any
particular manufacturing sector. None of us wants the Mini to be
produced in China and it may well be that other models come back
to the UK.
(Con)
My Lords, I declare my interest as an owner of an electric Mini
and a diesel car. The electric Mini is one of the best cars I
have ever had. It costs nothing to run because I charge it from
sunlight from my solar panels. What on earth are the Government
doing by allowing this icon of British industry to be changed and
moved to China?
(Con)
Of course, a lot of the design and innovation that went into the
Mini did come from the UK, but the Government are clearly not
going to get involved in some decisions by private companies as
to where they do their manufacturing. However, we can provide
support to companies to make sure that they do manufacture in the
UK and that is why we have the automotive transformation fund.
(LD)
My Lords, can the Minister reassure the House that the end-life
of EV batteries will not be landfill? Also, can she update the
House on government support for research into the remanufacturing
of EV batteries?
(Con)
It is really important that we understand what happens to
batteries throughout their lives. It is the case though that
there are 20 million EVs on the world’s roads already and there
is no evidence to suggest that their lifespans are any different
from those of a petrol or a diesel vehicle. We expect that many
EV batteries will have a guarantee of about eight years, or
100,000 miles. As for the end of their lifespan, it is very
important that we focus on recycling. Of course, the Government
are focused on that, and I will write to the noble Baroness with
more information.
(Con)
Is now not a good time for His Majesty’s Government to have a
whole look? We have the strategy of 2030 ahead of us, when petrol
cars are supposed to disappear, but at this point in time we have
a situation where electric cars are hugely expensive; they are
not available at a competitive price for ordinary families.
Ordinary families living in tower blocks in my former
constituency cannot recharge those cars, so is it not time that
we had a look at the whole strategy openly and took a little time
about it to ensure that we have a policy that is workable in the
future, taking into consideration the point added by my noble
friend on the Bench below?
(Con)
The price of electric vehicles has fallen dramatically over
recent years, and that was helped by the Government providing
quite significant grants in the early years to ensure that the
prices were lower. There are now 24 models that cost less than
£32,000 new—
Noble Lords
Oh!
(Con)
If I may finish—because I too would not buy a new car for
£32,000—the second-hand market, in my view, is the key to getting
widescale acceptance from, and affordable vehicles to, the
consuming public. The second-hand market is getting stronger. The
biggest suppliers to it are the fleets, and we are working with
them to ensure that their models get to the second-hand market.
(Lab)
My Lords, the transition to electric vehicles is vital to the
survival of our society as we know it; the impact of climate
change is even worse in many other countries. The report sets out
some sensible recommendations to help on the way. Which, if any,
of the three or two-plus-two recommendations does the Minister
reject, and why?
(Con)
I am afraid that I am not familiar with the recommendations in
the report.
(CB)
My Lords, do the Government have a strategy to deal with
financial incentives being given by the Chinese Government to
entice British firms to move to China, and if so, what is it?
(Con)
I will have to refer to the relevant department, but it is of
course the case that the UK Government also provide support to
various companies to invest in the UK and to create jobs here.
All countries will have their own strategies, but I will write to
the noble Baroness with more information.
(Con)
Will my noble friend agree to speak to her colleagues at Defra
about the huge shortage of electric charging points on our inland
waterways? There is a disproportionate amount of diesel and
petrol boats, particularly on the Thames, which are heavily
polluting—I declare an interest as an owner of an electric
boat—but the reason that there are not more electric boats is
simply the paucity of charging stations.
(Con)
My noble friend raises a very important point. The Government are
very focused on the decarbonisation of the maritime sector,
whether that be inland or on sea, so I will certainly speak to
Defra, but I will also write to my noble friend, because I think
that there is more that I can say on inland waterways.
(Lab Co-op)
My Lords, is it not even more important to get people to stop
using their cars as much as possible, whether they are electric,
diesel or petrol, and go on the train? Is not that even more
difficult, as I found this morning, when the 8.30 am and the 9.30
am trains from Edinburgh were cancelled because there were no
staff available? The noble Baroness, Lady Ramsay, and the noble
Lord, , are stuck on a train. They
were turfed off at Preston and had to catch another train. That
is not reliable. What is the Minister doing to get reliability in
our long-distance trains?
(Con)
I absolutely agree with the noble Lord. There are some
circumstances on our trains where the service is not very good at
all. We are working very closely with some of those providers
that are not providing the level of service that we want, because
the Government’s goal is to provide choice. If people want to be
able to use the trains, we have to have trains that actually
work. We are very focused on that, and I am sure that the noble
Lord will have seen comments from the Secretary of State for
Transport regarding how we feel about the services being offered.
