EV adoption in the UK is "at risk of slowing" unless the government introduces further incentives, according to a new report from Lloyd's Banking Group.
The report recommends that the government provide clarity on so-called Benefit in Kind rates beyond 2028 – an important incentive enabling leasing companies to make EVs available at cheaper rates.
Also among the policy recommendations is that the government retain the exemption for ultra-low emissions vehicles through salary sacrifice schemes.
Many industry commentators have called into question the current UK EV incentive landscape as there are currently no subsidies for private buyers – meaning that fleet purchases make up around half of UK EV registrations.
Last year, the government also pushed back its planned ICE vehicle phase-out from 2030 to 2035.
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The report notes that the decision to push back the Zero Emission Vehicle Mandate has not affected fleet uptake of EVs.
"Delaying the ZEV Mandate to 2035 has not dampened ambition but increased the likelihood of fleet managers to consider EVs, conceivably because it gives firms the opportunity to demonstrate their sustainability credentials to customers and colleagues," the report says.
As a result, Lloyds now finds that full fleet electrification takes UK companies an average of four years, down from the seven year period outlined in its previous report.
Nor has the EV mandate push-back had a net negative impact on drivers’ appetite for EVs, Lloyd's finds. According to the report, almost 29pc of respondents say they are now more likely to switch to electric than before the announcement, while 20pc say they are less likely and 51pc have not changed their plans.
"Just over two thirds (69pc) think the government could be doing more, primarily through measures to reduce vehicle cost (46pc), boost charging point availability (45pc) and improve the availability of on-road charging infrastructure at home," the report says.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
