Andy Burnham and the Labour Party must make one tweak to the new driveway rule next week, otherwise millions of motorists will be furious. The Prime Minister's new driveway update has split electric car owners down the middle, and the millions of drivers who find themselves on the wrong side of the fence will be enraged.
Cutting VAT rates on domestic electricity supply might have seemed like a good idea. It's the popular cost-of-living-focused plan that Mr Burnham likely believed would keep most of the British public happy for the time being. But there's one thing he didn't bargain for: EVs.
Domestic charging costs fall to 7p per kWh
Slashing VAT rates from 5% to 0% would have a knock-on effect on those charging their cars at home, cutting costs even further and delivering a massive boost for those with big houses and their own driveways. Data shows that topping up at home will now cost as little as 7p per kWh or 2p per mile. It couldn't get any cheaper if it tried.
However, those who live in terraced housing, apartment blocks and major cities without the luxury of a driveway have been left behind. Many of these are forced to top up their cars at pricey public charging points where VAT is still charged at 20%. The difference? The cost of charging sits closer to 50p per kWh or almost 15p per mile.
Millions without off-street parking
Estimates from the English Housing Survey (EHS) suggest around eight million households in England do not have access to a drive, garage or any form of off-street parking. EV owners can quite literally look over the road and see their neighbour topping up their car at less than a quarter of the price. If Labour are serious about an EV transition, this is the sort of serious issue they can't ignore.
Party chiefs would probably argue back and say Labour are already doing its bit by slashing red tape on cross-pavement solutions, meaning residents could soon find it easier to install pavement gullies and enjoy domestic rates. But not everyone can benefit: those living in one of 10,000 conservation areas are told they will still need to apply for planning permission. You couldn't script it if you tried.
Equalising public charging VAT
The only way Mr Burnham and Labour can save face and make sure they have motorists back on side is to bring public charging VAT rates into line with private fees.
The motoring industry has been demanding action for years, and cutting costs could make a massive difference. Previous analysis from Hippo Leasing showed that equalising public charging VAT with the 5% domestic rate could have saved high-mileage EV drivers around £389 a year. It would, of course, be even more if VAT were slashed completely to bring fees into line with the current 0% domestic rate. All eyes are on Labour.
