My Lords, the UK is a global leader in the transition to zero-emission vehicles, with the largest EV market share of any major European economy in 2025. The Government are committed to working with manufacturers, charge point operators and fleets to ensure that the transition is a success. We are investing £7.5 billion over the next decade to help drivers to make the switch.
My Lords, I thank the Minister for her Answer. An early review of the zero-emission vehicle mandate took place in 2024, but manufacturers really need certainty now, given that they are investing heavily in decarbonisation. Will the Government give manufacturers the clear assurance that they are committed to a transition to electric vehicles and cancel the proposed further review of the mandate in 2027?
The ZEV mandate is the largest carbon-saving measure across government, providing policy stability and regulatory certainty, and is an essential driver of investment and consumer confidence. It is the Government’s long-standing commitment to have a review of the ZEV mandate. It will commence later this year and will be published in 2027. It is absolutely crucial that we have confidence across the system to make sure that we move forward successfully.
My Lords, the Minister will be aware that there is resistance among those living in rural communities to switching from petrol and diesel vehicles to electric vehicles. What was the rationale behind introducing pay per mile? What assessment has been made of the impact that it will have in rural areas? Will the Government postpone it until after 2030 to ensure that more people will purchase EVs in rural areas?
The Government take very seriously the issue of rural communities and recognise that car transport is essential to people’s mobility. It is essential that we move forward with coming up with a fair system. That will be the basis for all our conversations and decisions in order to make this equitable as we go forward over the years.
My Lords, I declare an interest as a driver of an electric car. Has there been any increase in accidents involving pedestrians due to the silent nature of these vehicles?
My Lords, where do the Government now stand on cutting VAT on public charging of EVs from 20% to 5% to match home charging? Are we at risk of the costs of operating an EV making it an unviable choice for anyone without a driveway?
It is important to recognise that any decisions about VAT on all these measures will be a matter for the Treasury, which will, obviously, be looking at all the impacts of any policy change as we go forward.
My Lords, I refer to my interests as the director of the Global Warming Policy Foundation. Figures show that UK car production has reduced to its lowest level since the 1950s, yet a Chinese EV manufacturer has now eclipsed every other global manufacturer of motor vehicles. Does the Minister regard that as a success?
The most important thing we have to do is work with the manufacturers in this country. The decision under the previous Government to change the target sent a wave of uncertainty through manufacturers. It is absolutely critical that we keep that certainty and have clarity. We are fully committed to the manufacturing industry and base in this country. Of course, we are having conversations with China, as per the Prime Minister’s recent visit, and there are so many positives to come from these conversations. We look forward to the industry moving forward to full strength.
My Lords, the Question refers to electric vehicles, and anyone in our cities and towns will have seen the increasing prevalence of electric-powered cycles and scooters, often driven extremely dangerously by people who are not wearing helmets, and in many cases dumped, where they are available for hire, all over the place. Can my noble friend the Minister enlighten us as to what consideration has been given to requiring that all vehicles of this nature be properly labelled and identified so that, if people break the law, it is possible to trace them? If it is a hired vehicle, you would presumably have a credit card connection that you could follow up in order to apply a penalty.
My noble friend raises some crucial points. When I go home, I have to tell people that, in going around London, one of the most dangerous exercises is crossing the road because of the fear of unregulated cycles coming through. We have had many debates on this. I do not have a definite direction for my noble friend, but I know that he will maintain a strong interest in this area and will make sure that, as we move forward, we take everyone with us to achieve better results.
Going back to rural areas and the electric vehicle charging infrastructure, is the Minister aware that, if you have a drive, you will have to dig it up to put new cabling in because older housing stock is not capable of taking the new power? In rural areas, 5G is intermittent or non-existent, so the charge point does not speak to the internet and therefore the smart meter. To add to that, it is not smart enough to log on to the house’s domestic wifi, so the box is not able to communicate with the app. Rural infrastructure is not good enough to go along with the Government’s noble aims.
I have a feeling that the noble Lord might be speaking from experience given the depth of his knowledge. I met my neighbour—not that we live in a particularly rural area—who had these issues. That is why the Government are investing so significantly into the whole area of charging. One of the issues that really aggrieves me, living in a city such as Leeds where we have a lot of terraced houses, is that back-to-back houses do not have the potential for a garage. But that is why I really welcome the £25 million specifically going into that work. We know this is challenging and we know that there are a whole variety of different circumstances, but with proper consultation and engagement through local authorities in our local areas, I think we can move forward.
My Lords, I readily acknowledge that the EV charging network in the UK is growing very rapidly, but none the less there are issues. Some parts of the UK are significantly underserved: public charge points are often not sited close to where people live; grid connections can be unavailable; some motorway service areas lack rapid charges. Given the strategic importance of the move to EVs, do the Government not need an organisational focus to bring real coherence to the development of our national EV charging infrastructure?