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NFDA demands EV boost from government's 2017 budget

Sue Robinson, director of the National Franchised Dealers Association

The NFDA has called on the government to boost EV adoption with grant funding, improve EV tax breaks and freeze fuel duty ahead of next week’s 2017 government budget.

Sue Robinson, director of the National Franchised Dealers Association (NFDA), believes that the promotion of electric vehicles is key to the prospects of retail business across the UK and wants to see that reflected in the statement issued by chancellor of the exchequer, Philip Hammond, next Wednesday.

“Uncertainty surrounding Brexit and current negotiations has affected consumer confidence over the past months, it is essential that Government ensures that economic policy supports business and consumer spending in the forthcoming Autumn Budget”, said Robinson.

The NFDA called on the government to continue to support the uptake of electric vehicles through various grants.

The current Workplace Charging Scheme and Electric Vehicle Homecharge Scheme must be continued, is said, adding that a second-hand electric vehicle grant must also be introduced.

Value Added Tax (VAT) levels for electric vehicles should be reduced to 15%, the association said, before adding that a 5% would bring in line with VAT on electricity.

Fuel duty should also be frozen.

Robinson said: “Although sales of electric vehicles keep growing significantly their market share remains low.

“To help encourage the uptake of electric vehicles, it is vital that the government continues to support motorists through its grants and other incentives such as a reduction of the VAT.

“With the current economic climate and sterling volatility, a continued freeze on fuel duty is absolutely crucial to support consumer confidence in a period of uncertainty.”

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