Commons Sense

House of Commons · Ministers' Questions

VAT: Electric Vehicle Charging

Tuesday 7 February 2023 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Government committed to supporting transition to net zero emission vehicles with 2.5 billion funding since 2020
  • Scotland has 23% more public electric vehicle chargers per head and 73% more rapid chargers than England
  • Scottish Government receives 25% more funding per person than equivalent UK Government spending elsewhere

Topics (select to filter)

Questions & Answers

Q1 Gavin Newlands SNP
Taxation Climate
Context

The question addresses discussions on the VAT level for electric vehicle charging, focusing on the transition to net zero emission vehicles and support from Cabinet colleagues and motor industry representatives.

Question

What recent discussions he has had with (a) Cabinet colleagues and (b) representatives of the motor industry on the level of value added tax for electric vehicle charging?

Answer from Victoria Atkins

The Government are committed to supporting the transition to net zero emission vehicles to help the United Kingdom meet its net zero obligations, including £2.5 billion since 2020 to fund targeted vehicle incentives and charging infrastructure.

Partly answered

Not addressed: Specific discussions with Cabinet colleagues and motor industry representatives on VAT levels for EV charging were not addressed.

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Q2 Gavin Newlands SNP
Taxation Transport
Context

The question highlights the higher number of public EV chargers in Scotland compared to England and raises concerns about VAT rates for those unable to charge at home. It questions if the upcoming Budget will address this issue.

Question

We know that Scotland has many more public electric vehicle chargers per head of population than England; according to the Department for Transport's January figures, it has 23% more per head and 73% more rapid chargers per head than England. However, we also know that those unable to charge at home have to pay 20% VAT on often already significantly more expensive chargers. If the Minister agrees this acts as a disincentive to switching to EVs, will it be fixed in the upcoming Budget?

Answer from Victoria Atkins

The Scottish Government receives 25% more funding per person than equivalent UK Government spending elsewhere. Introducing VAT relief for EV chargers would impose additional financial pressures, as VAT is expected to raise £157 billion in 2022-23.

Not addressed: Specific question about VAT relief for public EV charging points was not addressed; instead, the response shifted focus to funding differences between Scotland and other parts of the UK.

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