Government set to ban the sale of new petrol and diesel cars and vans from 2030

The Government is set to ban the sale of petrol and diesel cars and vans from 2030, with hybrid vehicles to follow in 2035.

The original deadline was set to be 2040, but the Government is now unveiling its new green policies as it looks to create a ‘green industrial revolution’ to meet climate targets and reduce emissions.

The Government has a legal target to reduce greenhouses gases to net-zero by 2050, which requires a significant reduction on emissions and certain sectors that are defined as ‘hard-to-treat’, such as aviation and aerospace, must be offset by green measures such as planting new trees.

Under the proposals, diesel lorries will also be phased out, while domestic energy improvement grants will be expanded and new funding will be introduced to incentivise nuclear and hydrogen power.

The Government’s ten-point plan to tackle climate change includes;

  • £500 million to test hydrogen cooking and heating in homes
  • £1 billion to make homes and businesses more efficient
  • £1.3 billion for new charging points for electric vehicles and £582 million in affordability grants
  • £500 million investment in the development of large scale electric batteries

The reduction in timescale for the phasing out of petrol and diesel vehicles has increased pressure on the automotive industry, which must accelerate its electric vehicle offering in the UK to ensure it meets targets, with some industry experts calling the proposals “incredibly ambitious”.

The changes will also require consideration for businesses that use commercial vehicles or company cars, with long-term planning to transition to electric vehicles necessary and tax considerations to be made.

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Posted in Blog, Business, Economy, Government Funding, Grants and Deferrals, SMEs / Business, Tax.