The Prime Minister has overseen new updates to driveway rules this October, but not all electric car owners are feeling the benefit.
Andy Burnham has been told to make updates to his October driveway rule (Image: Getty)
Andy Burnham has been told to make a major update to driveway rule changes that came into effect this October. The Labour leader and Prime Minister introduced cuts to domestic electricity VAT rates from October 1, with fees cut from 5% to 0%. The move was designed to help homeowners with their electricity bills, but the plan has also had a knock-on effect for electric car owners across the country. Those with access to their own driveway or off-street parking space can cash in, with experts suggesting bills are now set to be as low as 2p per mile for those using a smart tariff.
However, those living in more urban areas are caught out, with VAT rates at public charging plugs still at 20%, which puts the cost closer to 12p per mile. To help motorists without access to a driveway, Labour has slashed red tape on cross-pavement solutions such as pavement gullies that run underneath the footpath.
Iain Reid, Global Content Director at Carwow, said this was a “welcome move”, but suggested that more should be done for those relying on costly public bays to top-up their battery. He added: “The other option the Government has at its disposal is to lower the VAT on public charging.
“According to a Carwow survey of nearly 2,600 respondents, 77% agree that cheaper public charging would make electric vehicles substantially more accessible to drivers without home charging — such as renters or those without private driveways.” Hippo Leasing has warned that Mr Burnham’s decision to slash domestic electricity VAT rates over public charges may have cost motorists hundreds of pounds.
It suggested that equalising public charging VAT with the previous 5% domestic rate could have saved high-mileage EV drivers around £389 per year. Tom Preston, Chief Executive Officer at Hippo Leasing, previously said: “The current 20% VAT rate on public EV charging effectively penalises motorists who don’t have a driveway.
VAT has been slashed on electric car charging fees (Image: Getty)
“Right now, it costs more to plug in on the street than it does at home, and that’s exactly backwards for the drivers who don’t have a driveway, often the ones we most need to bring into EVs.”