A leading automotive expert has labelled the absence of support for second-hand electric vehicles (EVs) in the recent Budget a significant 'missed opportunity' for the Labour government.
Call for a Simple Rule Change
Matt Galvin, the Managing Director of Polestar UK, has directly called on Chancellor Rachel Reeves to implement one straightforward policy shift: introducing a subsidy for pre-owned electric cars. He argues this single measure could dramatically increase demand and help overcome the primary barrier of cost for many potential buyers.
Speaking to the Express, Galvin stated, "There's one big one actually, and it's a big missed opportunity, a subsidy for pre-owned or used electric cars." He emphasised that three-year-old EVs now often reach price parity with equivalent petrol or diesel models, offering a perfect, more affordable entry point for drivers new to electric technology.
Learning from Success Abroad
Galvin pointed to a proven model for this policy, highlighting its success in the Netherlands. "This happened in the Netherlands about a year or two ago, the Dutch Government put subsidies on used EVs and it worked really, really well," he explained.
Beyond stimulating sales, such a subsidy could help alter market perceptions. Galvin suggested it would address negative publicity around the steep depreciation of new EVs by bolstering their residual value in the second-hand market. "This is a great way to address two issues," he added, referring to both adoption rates and market stability.
New Road Tax for EVs Confirmed
The Chancellor's Autumn Statement did confirm future taxation for electric vehicles. Starting from April 2028, pure electric car drivers will be charged a road tax of 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile. These rates will rise annually with inflation.
According to the Office for Budget Responsibility (OBR), this new levy will be about half the current fuel duty rate paid by drivers of petrol cars. In a separate move, the 5p per litre cut in fuel duty has been extended until September next year, after which it is scheduled to increase in line with the Retail Prices Index (RPI) measure of inflation.
The expert's intervention underscores a growing debate on how best to support the UK's transition to electric transport beyond the initial wave of new car buyers, focusing on making sustainable choices accessible to a wider audience through the used vehicle market.
