Andy Burnham has introduced a new rule affecting drivers across the UK. But some motorists are likely to be annoyed at the new policy.
Andy Burnham’s new driveway rule could be considered very unfair (Image: Getty)
Andy Burnham’s new driveway rule change will leave thousands of drivers absolutely fuming. Has he made a massive mistake? It’s another two-tier Labour move. Some drivers will see massive savings while others only watch on baffled, their faces like thunder.
One of Mr Burnham’s first policy announcements as Prime Minister was to cut VAT rates on domestic electricity from 5% to 0% in a bid to slash bills. But did he realise the move would also impact electric car owners?
Electric car owners could be affected by new EV VAT rules (Image: Getty)
If you have a big house with a driveway or plenty of off-street parking space then the news is pretty positive. In fact, you’re probably quietly laughing to the bank. Experts have already suggested that the VAT cut, introduced on October 1, could save high-mileage drivers as much as £40. A big win for some.
However, if you find yourself in a big city such as London, Manchester and Birmingham, Mr Burnham’s new plan probably paints a very different picture. Many electric car owners living in urban areas don’t have access to their own driveway or charging plug and increasingly rely on public bays to top up their car.
This has always been charged at 20% VAT and Labour’s new cut doesn’t impact this one bit. In fact, these owners are regularly paying close to 50p per kWh of charge compared to just 7p for those plugging in at home. Data from New Automotive has suggested as many as 205,000 vehicles are totally reliant on public charging stations.
Meanwhile, EVA England has suggested that 25% of EV drivers in urban areas do not own a home charger. This is compared to just 8% in suburban areas and 5% in rural communities.
This issue is turning people away from EVs completely, with 60% of petrol and diesel drivers without off-street parking insisting they would never consider a battery car.
Industry has been demanding action around the so-called “driveway divide” for ages, calling out the unfairness of the two separate charges. The Government took action all right, but maybe the wrong one.
The unfairness has actually just gotten bigger, with a 15% divide between home charging and public plugs now extended to a 20% difference.
It’s once again a tale of the ‘have’s and the have not’s’ and it could come back to bite Andy Burnham if frustrated road users don’t let him off the hook at the ballot box.
Yes, price cuts will be welcomed by many and it’s great to see more money being put into people’s wallets. But has Andy Burnham just made a massive mistake?