Andy Burnham's new driveway rule change, set to be introduced in weeks, has one major flaw and will lead to "greater disparity" between certain road users, according to experts.
VAT changes and charging costs
Melanie Lane, Chief Executive Officer at electric car charging group Pod, warned that VAT updates on domestic electricity prices coming this October would be a blow to those forced to charge at public bays.
Those charging at home currently pay 5% VAT, compared to 20% VAT for public charging bays. However, Mr Burnham's decision to axe VAT on household energy bills entirely for six months from October means there is now a 20% difference between those who can top-up at home, and those who still charge on the public network.
Impact on costs
Domestic electric car charging rates will fall from October. The new rule could drive the cost of charging an EV at home to as little as 1.52p per mile. Meanwhile, public charging costs are around 51p per kWh.
Speaking exclusively to the Express, Melanie said: "It's good news for people who can charge at home, as the VAT cut can be passed on to consumers through their tariffs, but it does create a greater disparity for those who can and can't charge at home and need to rely on the public network."
"While industry has a responsibility to deliver positive charging experiences wherever drivers plug in, we would also welcome support from the government to help close the charging cost gap and make the EV transition accessible to all."
Funding and industry calls
The decision to scrap domestic VAT rates was Andy Burnham's first decision as Prime Minister, with the idea expected to take around £45 off the yearly Ofgem price cap in October.
The new Labour leader explained that the move was being funded after cancellation of the expected £1.8 billion Digital ID programme.
Before Mr Burnham's decision, there had been plenty of calls from industry to bring the 20% public VAT charge in line with the current domestic 5% fee.
The Society of Motor Manufacturers and Traders (SMMT) previously said: "In addition, the high rate of 20% VAT on public charging should be reduced to align with the 5% VAT levied on home charging."
