Hey everyone, EV JACK here! Today, I’m diving into some news that could be a big win for current and future EV owners. Rachel Reeves, Labour’s Shadow Chancellor, just announced that if Labour comes into power, they plan to support EV adoption in the UK through their upcoming Budget.
So, what’s in it for us? Here’s a quick breakdown:
Extended Tax Incentives: One of the biggest takeaways is Labour’s promise to extend company car tax incentives for EVs until 2028. If this goes through, businesses and individual EV drivers alike can expect a more financially sustainable setup for at least the next four years.
Bigger Tax Gap Between EVs and Fossil-Fuel Cars: Starting April 2025, Labour plans to widen the tax gap between electric and traditional vehicles in the initial rates of Vehicle Excise Duty (VED). This means the cost benefits of going electric could grow even more, making EVs an increasingly appealing option.
Long-Term Revenue from EV Uptake: According to Reeves, these initiatives could contribute about £400 million in revenue by the end of the forecast period—funding that could, in turn, help accelerate the shift towards a cleaner transport system in the UK.
It’s promising to see Labour putting forward plans that could make a real difference for EV drivers, and it’s encouraging to know we might have support in maintaining EV-friendly policies for years to come. Could this be the push we need to get more people into electric cars? Only time will tell, but it’s a step in the right direction for a cleaner, greener future.
