News analysis


system that is seen as fair and enjoys public acceptance.”


The report also notes the success of low BIK company car tax rates and salary sacrifice schemes in encouraging the adoption of EVs, and also recognises the major role played by fleets in driving early EV adoption. It calls for the low BIK rates to be maintained – although, as with other incentives in place, it says the government must also plan for how they will eventually be tapered and exited.


The report also notes that with fleet EVs generally being higher-value cars and SUVs, these may have a limited impact on improving affordability for consumers when they reach the second- hand market.


The report also welcomes the government’s commitment to the central government’s own car fleet being moved zero emission by the end of 2027, and argues that in order to communicate this commitment more visibly, all cabinet members should be driven in EVs by the end of 2024.


The report also notes the “limited but important” contribution that is being made by car clubs to the EV transition, and suggests that car sharing will likely become increasingly significant as the Government looks to legislate for the future of autonomous vehicles on UK roads. It welcomes the credit for car club vehicles included in the ZEV mandate, and says an accelerated chargepoint rollout would support them further.


Commenting with the publication of the report, the inquiry chair Baroness Parminter said: “Surface transport is the UK’s highest emitting sector for CO2, with passenger cars responsible for over half those emissions.


“The evidence we received shows the government must do more – and quickly – to get people to adopt EVs. If it fails to heed our recommendations the UK won’t reap the significant


benefits of better air quality and will lag in the slow lane for tackling climate change.”


Reacting to the publication of the report, RAC head of policy Simon Williams said: “We welcome this important and far-reaching report from the House of Lords and urge the Government to take the recommendations it makes seriously. “We have long argued that mass uptake of EVs – which is the government’s aim – depends on prices falling to make them the natural choice for more people, so we are particularly pleased to see the committee supporting the introduction of targeted grants for new electric cars, aimed at the more affordable end of the market. “The unequivocal support for VAT to be charged at the same 5% rate whether a driver is charging at home or at a public charger also now piles yet more pressure on the Treasury to correct this bizarre anomaly. As things stand, the current mismatched VAT rates are an unnecessary barrier to switching to an electric car for the estimated third of people who can’t charge an EV at home and who wholly rely on the public charging network.”


Society of Motor Manufacturers and Traders chief executive Mike Hawes said: “The Lords report recognises the role government must play in accelerating the EV transition. Many of the recommendations have already been highlighted by industry, such as chargepoint rollout ahead of need, equalising VAT on public charging to home charging and the importance of purchase incentives, which could be delivered by a VAT cut.


“The report also notes the need for clear, consistent communication of the UK’s ambition. The industry will continue to work with government to ensure this is a transition for all – including ministers whose cars should also be electric by the end of the year.”


Below: The Peers' report also tackles issues faced by the UK's charging network.


In this issue


Following on my grey fleet concerns last month, I wonder if companies might pay more attention if their staff were


properly trained?


I ask this, as this month we’ve focused on training, with Jack taking on the AFP’s Fleet Vehicle Management introductory course. I’ll leave it to Jack to tell you how he did (see p22/23), but even as a journalist with many years of experience writing for Business Car, he still learnt a lot.


Apparently, this course has been running for 15 years and attracts 300 people annually. In my opinion, I think it should be a staple for any induction for new starters who are going to have anything to do with the fleet industry. Plus, as a refresher undertaken by established members of staff every couple of years. Either way, I recommend you have a read of this piece, as training will surely lead to better fleet practices, which are surely the way forward in these difficult times.


I must admit I was surprised to receive an email at the end of 2022 from Maserati UK, asking if we could catch up to discuss their fleet plans. What with the iconic luxury Italian sporting brand’s last brush with fleet being the now discontinued Ghibli diesel.


Anyway, last year was mostly about their new Grecale SUV, but the end of that conversation drifted to their excitement at the launch of the Folgore EV range in 2024. Well, these models are now close, and I’ve been back to see the cars and have a chat about the brand's exciting EV future. Check out p28/29 for more.


I hope you enjoy the issue.


Martyn Collins Business Car Editor


www.businesscar.co.uk | February 2024 | 5


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