Thousands of Brits to get virtually £4,000 off automotive value – see low cost particulars
Chancellor Rachel Reeves is set to unveil a major £1.5billion package to give people better access to an electric vehicle in her Budget next week
Thousands of drivers will benefit from up to £3,750 each to switch to electric cars in plans to be announced in next week’s Budget.
Chancellor Rachel Reeves is set to unveil a major £1.5billion package to help people get an electric vehicle (EV). The Electric Car Grant scheme will receive a £1.3bn boost to extend it for an extra year.
Under the scheme, car manufacturers can apply for a grant to sell compliant vehicles more cheaply.
Since its launch in July, the grants have helped over 35,000 drivers make the switch to an EV by cutting upfront costs by up to nearly £4,000. Some £650m had already been announced for the scheme until 2028/29.
Drivers will also be able to charge their EVs in more places, with an extra £200million pledged to get more chargepoints across the UK. It is on top of £400m already announced earlier this year to boost their rollout.
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The Chancellor is also expected to publish a consultation on making it easier and cheaper for people without a driveway to charge EVs.
At the same time, the Government has announced Britain will produce more raw materials used to make electric cars, as well as smartphones, laptops and fridges, to end an overreliance on China.
Currently the UK makes just 6% of the vital components it needs. It means Britain is vulnerable from an overreliance on a select few countries for its supplies of materials needed to power things like electric vehicles, wind turbines and F-35 fighter jets.
But under a first-of-its-kind plan, Britain will aim to produce 10% of the UK’s raw material needs domestically and 20% through recycling by 2035.
Critical minerals – like lithium, nickel copper – are vital for items like smartphones and fridges that are essential for everyday life. In the UK, demand for copper – used for electric plugs and car brakes – is set to almost double by 2035, while demand for lithium – used for powering our laptops and electric cars – will increase by 1,100%.
Under the landmark strategy, it is hoped at least 50,000 tonnes of lithium will be produced in the UK in the next decade – more than the weight of the 46-tonne Titanic.
UK businesses will be boosted by £50million to support critical minerals projects. Key regions including across North East England, in County Durham and Teesside, and the South West in Devon and Cornwall, have vital resources.
China currently dominates global production of critical minerals, controlling 70% of rare earth mining and 90% of refining.
Keir Starmer said: “Critical minerals are the backbone of modern life and our national security – powering everything from smartphones and fighter jets to electric vehicles and wind turbines.
“For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks.
“That is why we are taking decisive action to change that, boosting domestic production, ramping up recycling, and backing British businesses with the investment they need to compete on the international stage and drive down the cost of living for people at home.”
Jeff Townsend, chief executive of the Critical Minerals Association, said: “We welcome the Government’s renewed commitment to securing the critical minerals that underpin the UK’s Industrial Strategy and future economic resilience. This strategy marks an important and timely step forward.”
