With plans for electric van owners to face a £15 daily charge in central London, motoring specialists are urging the government to create stronger incentives for businesses when purchasing electric vehicles. If the discount, which currently applies to electric vehicles, is not extended, they believe creating incentives is the best way to keep businesses happy whilst ensuring a greener economy.
More than 40 businesses have signed a letter to ask the mayor of London to extend the congestion charge exemption for electric vans – including Ocado, the AA and the Federation of Small Businesses.
City Hall said it was working with Transport for London to “see what more could be done to mitigate the effect of this phasing out and further incentivise businesses to make the switch to cleaner vehicles”.
Alex Woodcock, from XLCR Vehicle Management, said: “If drivers are inevitably going to face extra charges, we urge the government to create stronger incentives for businesses when purchasing electric vehicles, such as offering better tax benefits. Otherwise, we fear this will deter businesses from transitioning to electric, which could have detrimental effects on the environment.”
“Currently for taxable benefits, there is no difference to the business purchasing electric vehicles. Understandably, fuel saving plays a big part for electric van owners but the sheer cost difference between them and diesel makes businesses see no point, especially if they’re still having to pay £15 a day from January. After the pandemic, the government incentivised customers purchasing electric vehicles with the super tax deduction of 130% of the cost of the vehicle.”
“Many businesses got on board with this which helped keep the economy growing. If there’s no reverse decision on removing the current discount, we strongly urge them to reconsider their approach and provide alternative solutions which will help to ease the financial impact on businesses.”
A London City Hall spokesman said: “We continue to work with government on national measures that could make a difference, including the extension of the plug-in van grant.”
