Andy Burnham's new driveway rule changes are forcing UK motorists to pay a "tax premium" in a move criticised by specialists as "unfair". The changes cut VAT on household electricity charges, creating a ripple effect for electric vehicle owners.
VAT cut on home charging
Those charging their EVs at home now face 0% VAT to power up their motors, reduced from the earlier 5% levy imposed before the October 1 regulation shift. Earlier research indicated the adjustment could save electric car drivers up to £40 annually.
However, the reductions are only accessible to those who possess their own off-road parking area or driveway. EV drivers lacking this privilege and who charge their vehicles at public stations continue facing 20% VAT charges.
Campaigners criticise 'driveway divide'
The decision has prompted campaigners to criticise the Prime Minister for expanding the so-called driveway divide. Speaking to The Express, John Lewis, CEO of EV plug specialists char.gy, emphasised that the fresh proposals make an "unfair system even worse" as he urged Labour to reduce expenses at public charging points.
John said: "Cutting VAT on home electricity while leaving public charging at 20% would make an already unfair system even worse. Drivers with a driveway would get cheaper charging, while millions without one would be left paying a tax premium simply because they park on the street. If VAT comes down at home, it has to come down at the kerbside too."
Industry calls for public charging VAT cut
The motor industry has been campaigning for public EV VAT charges to be reduced, with the Society of Motor Manufacturers and Traders (SMMT) and the AA amongst those previously demanding rates be slashed, reports the Express.
Earlier data from the Government's English Housing Survey (EHS) revealed that as many as eight million households in England (32%) lack access to their own off-street parking space.
Last year, Jack Cousens, head of roads policy, said that Labour now had the chance to "help make the case for EVs more compelling by cutting the costs of charging across the public network".
Mr Lewis previously added: "Bringing VAT on public charging down to the same 0% rate now applied to domestic supply wouldn't just be fair. It would send a clear signal that government wants electric vehicles to be a realistic option for the two in five UK households without off-street parking, not just for those who can afford a driveway and a wallbox."
