A report released by trade group Logistics UK has warned that a lack of fiscal support from government is hampering electric vehicle (EV) uptake.
The organisation’s Electric Vehicle Report 2023 said that, while fleet operators had strong ambitions around decarbonisation, these were tempered by concern about costs associated with the transition.
“Respondents to the 2023 research reported volatile energy prices and vehicle acquisition costs, and called for more support through tax allowances for capital expenditure on green infrastructure, including increasing power supply capacity at their premises,” said the report.
“Many cited business planning challenges connected to uncertainty around costs and financial support, including sudden changes or withdrawals of grant funding for both vehicle acquisition and chargepoint installation.”
The organisation had called for fairer ways of funding energy supply upgrade, and consistent and straightforward rules for grants, taxation and regulations, in its previous report on the topic.
In this year’s edition, it urged government to “embed certainty for fiscal support” aimed at encouraging fleets to decarbonise, including for grants.
It advocated the amendment of the qualifying criteria for the 100 per cent tax deductible annual investment allowance for capital spending in the year of expenditure that was announced in the Spring Budget to include vehicles acquired via leasing or hiring – as well as calling for clarification around the usage of the allowance for investments in both buildings and equipment, including costs associated with increasing electricity supply at CV premises.
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