Andy Burnham's new October rule changes have been criticised as "unfair" by experts, who say UK drivers without driveways are left paying a "tax premium" when charging electric vehicles.
Mr Burnham has cut VAT rates on domestic electricity fees, a move that has a knock-on effect for electric car owners. Those charging their EVs at home now pay 0% VAT, down from the previous 5% fee applied before the October 1 rule change. Previous analysis has suggested the move could save electric car owners as much as £40 per year.
However, savings are only available to those fortunate enough to have their own off-street parking space or driveway. EV owners without this luxury, who top up their cars at public charging stations, are still paying 20% VAT fees.
Campaigners blast 'driveway divide'
The move has led campaigners to blast the Prime Minister for widening the so-called driveway divide. Speaking exclusively to The Express, John Lewis, CEO of EV plug experts char.gy, stressed that the new plans make an "unfair system even worse" as he called on Labour to cut costs at public bays.
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 car industry has been pushing for EV public VAT fees to be cut, with the Society of Motor Manufacturers and Traders (SMMT) and the AA among those previously calling for rates to be slashed.
Previous data from the Government's English Housing Survey (EHS) has found that as many as eight million households in England (32%) do not have access to their own off-street parking bay.
Last year, Jack Cousens, head of roads policy, said that Labour now had the opportunity 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."
