Halfords boss warns electric cars tax could slow switch from fuel
The boss of retailer Halfords has hit out at the Chancellor's move to start taxing electric cars, warning it will hold back the switch from petrol and diesel motors.
Chief executive Graham Stapleton said Jeremy Hunt's autumn budget announcementthatelectricvehicles(evs) would no longer be exempt from road tax from 2025 was "disappointing".
Under the plans laid out in the autumn statement, electric cars registered from April 2025 will pay the lowest rate of £10 in the first year, then move to the standardrate,whichiscurrently £165.
Mr Stapleton said it could impact the mass adoption of Evs,makingthembothcostlyto buyandnowmorecostlytorun.
He said: "There's no doubt the dutychangeonelectricvehicles is not helpful.
"It won't help the adoption of Evsforsure-weweresurprised to see that (in the autumn statement).evcarsaren'tgettingany cheaperquicklyandincreasing duty at this stage is disappointing."
Since EVS came onto the market, these models have been exempt from annual road tax as the Government has sought to incentivise take-up of electric cars.
But with an increasing numberofdriverschoosingevs-14.6 per cent of all new cars registered in 2022 up until the end of Octoberwereelectric-thegovernment is under increasing pressure to help fill the financial gap left by their road tax exemption.
Mr Hunt said on making the announcement that it would "makeourmotoringtaxsystem fairer" as the Office for Budget
Responsibility (OBR) has forecast that half of all new vehicles will be electric by 2025.
The Treasury revealed the changes would raise an extra £1.6 billion by 2027-28.
Mr Stapleton also raised worriesovertherevelationthatfuel duty could increase by nearly a quarter in 2023 under Government plans, which comes at a time of already mounting cost pressures on drivers.
The OBR revealed in its forecasts published alongside the Budget that it is expecting fuel duty to rise by 23 per cent in the spring, increasing the price of petrol and diesel by around 12p per litre.
Mr Stapleton said motorists are facing a "real challenge" amid the cost-of-living crisis.
He added that the pandemic has not meant fewer cars on the road.