Conservatives have pledged to save £877 million for taxpayers by scrapping government schemes designed to promote electric vehicles, including the Zero Emission Van Grant and Zero Emission Truck Grant. The party claims the current policy not only costs taxpayers millions but also pushes up prices in supermarkets and shops.
Shadow Transport Secretary criticises Labour's approach
Shadow Transport Secretary Richard Holden said: “Everyone wants to see emissions from Britain’s transport fleet reduced. But this should not come at the cost of an almost 19% increase in the cost of transporting food and produce around the UK, hitting hard-pressed families in the pocket and hammering haulage businesses. Britain’s hauliers keep our shelves stocked and our economy moving. Just as drivers should be able to choose the car that works for them, businesses should be able to choose the truck that works for them.”
Holden added: “Labour are spending £877million of taxpayers’ money chasing targets they plainly cannot meet. Their blinkered eco zealotry risks imposing huge costs on hauliers operating on wafer-thin margins, which will ultimately be paid by families at the checkout. The Conservatives will repeal Labour’s arbitrary phase-out dates, scrap unnecessary vehicle subsidies and back a multi-fuel future for British haulage. We will trust businesses, not Whitehall, to decide what works best for them.”
Planned phase-out dates and subsidies to be repealed
Labour’s policy will end the sale of new non-zero-emission HGVs up to 26 tonnes by 2035 and all new non-zero-emission HGVs by 2040. The Government is also consulting on a new regulatory regime that could include mandates for manufacturers, requirements for fleets to purchase or lease an increasing number of zero-emission HGVs, and penalties for non-compliance.
Conservatives say they will rule out these measures, which they claim would have a devastating impact on the cost of transporting food and other essential goods. By repealing the 2035 and 2040 phase-out dates and ruling out future manufacturer mandates, fleet requirements and purchase requirements, the Conservative Party will cancel £877 million of planned spending on the Zero Emission Van Grant and Zero Emission Truck Grant.
Multi-fuel future and cost concerns
Tories say they support decarbonising freight transport but reject the idea that this must mean moving entirely to electric vehicles. They argue the industry is already cutting emissions through biomethane, Hydrotreated Vegetable Oil (HVO) and battery-electric HGVs where suitable, and the Conservatives will back this multi-fuel approach rather than prescribe a single technology from Whitehall.
Electric HGVs can weigh up to four tonnes more than their diesel equivalents, reducing their payload and, in some cases, requiring additional journeys to transport the same goods. Additionally, longer charging times can reduce vehicle utilisation and add further staffing and operating costs. This is in addition to the baseline cost of an electric HGV, which is around two to three times that of an equivalent diesel. Current government subsidies still leave an electric HGV costing more than its diesel equivalent, which Tories say leads to higher prices in shops.
