By Alok Dubey, UK country manager of Monta

Alok Dubey, UK country manager of Monta

On Wednesday 15 March, Chancellor of the Exchequer, Jeremy Hunt will announce the Government’s plans to halt inflation, combat an impending recession and ultimately repair the economy. For those in the electric vehicle industry, this will likely see a mixture of good and bad news.

Luckily, the sustainability industry is in a perfect place to meet and overcome these challenges. Despite large-scale lay-offs in the technology sector, sustainability companies have so far shown themselves to be recession-proof. Investments in climate technology remain strong, and the transition to more eco-friendly solutions is now worth an estimated £71bn to the UK economy.

2022’s Autumn Budget and the introduction of road tax on electric vehicles from 2025 onwards was inevitable, but sadly may discourage more people from switching to zero-emission vehicles. Despite improvements in accessibility, range and charging, EVs are still very much in their infancy stage and a technology that needs nurturing, not burdening.

In 2023, what we need to see are more incentives, not less, especially with the 2030 ban on ICE vehicles looming and Ultra Low Emission Zone (ULEZ) expanding. Rather than taxing the future, fleet owners and drivers need to be encouraged that switching to electric is easier, cheaper and more reliable in the long-term.

One of the areas everyone will be paying attention to is the energy price cap. With the annual household bill set to rise from £2,100 to £3,000 in April, EVs are simply becoming more expensive to run. Any future increases will again discourage more people from making the switch, but by our own calculations the average cost of running an EV is still more than 10p cheaper per mile compared to the average cost for petrol vehicles.

The collapse of battery startup Britishvolt drew attention to the lack of support for UK-based electric vehicle battery manufacturing. While the company has been saved by an Australian firm, they have no future plans to create mass market EV batteries in the UK. Supply chain issues have shown why electric vehicle manufacturers need more local battery producers, but political uncertainty is discouraging investment.

More recently, Jaguar Land Rover owner Tata Motors says it needs £500m of government aid to set up its new battery factory in the UK. If the Government is serious in its bid in becoming a global EV leader, it will see this as a long-term investment and important step in becoming just that.

What we’d also like to see from this year’s announcement are more incentives for UK businesses that are looking to support employees and the general public in adopting EVs. Even with funding such as the Workplace Charging Scheme, the cost of installing EV charging stations still stands around £1,000-£1,500 per charge point, which might prove to be too steep for those unaware of the benefits of providing chargers.

The extension of the 100% first-year allowance for companies installing charge points until 2025 was a welcome sight from the 2022 Autumn Statement, but we’d like to see this go one step further with specific grants, incentives, or tax credits for local businesses that want to provide their own EV charge points.

And, as the installation rate of public chargers continues at snail’s pace, there is a huge opportunity for government to incentivise businesses. Not only will this help widen the UK’s charging network, but businesses that provide their own charging points could earn thousands of pounds in additional revenue per year. With many businesses struggling to even keep their own lights on, this could offer an attractive proposition.