Report: UK may cancel electric vehicle tax break to save money

The new UK government is looking to cut costs – and a £5,000 discount on all new electric cars could be on the chopping block, according to the Guardian. The budding UK electric vehicle (EV) market, much like the EV market in the U.S., is heavily dependent on tax breaks and rebates to keep the vehicles' final sticker prices competitive with conventional models. In England, the Nissan Leaf is priced at £23,350 after the £5,000 discount. According to Kieren Puffett, a used-car analyst from the UK, only the most environmentally conscious motorists would consider the Leaf at the elevated, albeit more accurate, price. Nissan is expected to start taking reservations for the Leaf in the UK starting in July.

That may be after a final decision on the fate of the £5,000 discount – along with a decision regarding financial support promised to Vauxhall, Ford and Nissan by the previous UK government – is made. Paul Everitt, chief executive of The Society of Motor Manufacturers and Traders Ltd., (SMMT) said:

We fully understand why the new government wants to validate spending decisions which were made in the recent past. But we believe that these expenditures which are going to be supporting the UK motor industry are consistent with the government's priorities and represent value for money.

In another blow to green-minded Brits, the government also announced the closing of its grant program that helps individuals and businesses install heat pumps and solar panels.

[Source: Guardian via Green Car Congress | Image: moacirpdsp – C.C. 2.0]