Recommendations & Conclusions
24 items
2
Conclusion
First Report - Low emission cars
There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. Consumers are not all yet convinced that zero-emission cars are a suitable alternative to petrol and diesel models, with concerns over the affordability of these vehicles, the distance they …
Government response. 2: PAC conclusion: There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. 2: PAC recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to …
HM Treasury
3
Recommendation
First Report - Low emission cars
We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. The Department for Transport makes a series of assumptions about the types of journeys people make and how …
Government response. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 3.2 The DfT’s EV infrastructure strategy (autumn 2021) will set out the vision and action plan for market-led charging infrastructure roll out needed to achieve the 2030 …
HM Treasury
4
Recommendation
First Report - Low emission cars
The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. There are a range of environmental impacts and costs affecting the growth of zero- emission cars, including the …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2022 4.2 The government is aware of the social, environmental and supply concerns surrounding the mining of raw materials for EV batteries. The vehicle manufacturing industry is global, …
HM Treasury
5
Recommendation
First Report - Low emission cars
There are other issues to be addressed in the transition to zero-emission cars, such as the need to train and retrain the workforce required to service the new car fleet, the impact on the demand for power, and the tax implications from phasing out new petrol and diesel cars. There …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The government is taking action to address the practical implications of the transition to electric cars. The DfT’s 2035 Delivery Plan sets out at a high-level …
HM Treasury
1
Conclusion
First Report - Low emission cars
On the basis of a Report by the Comptroller and Auditor General, we took evidence from the Department for Transport and from the Department for Business, Energy & Industrial Strategy on low-emission cars.1
Government response. 1. PAC conclusion: The Departments for Transport and for Business, Energy & Industrial Strategy have not yet published a clear plan for delivering the Government’s ambition for the expansion of zero-emission cars. 1: PAC recommendation: Departments for Transport and for …
HM Treasury
6
Conclusion
First Report - Low emission cars
As part of the Ten Point Plan for a Green Industrial Revolution, Government has committed to publishing a delivery plan in 2021 for achieving the phase out of new petrol and diesel cars from 2030, but this has not yet been published.9 In our previous report on achieving net zero, …
Government response. 1.1 The government agrees with the Committee’s recommendation. 2 Target implementation date: Autumn 2021 1.2 The government recognises the complexity of the transition to electric vehicles (EVs) and the importance of working with stakeholders to ensure that the ambitious 2030 …
HM Treasury
7
Conclusion
First Report - Low emission cars
We were interested in hearing the Departments view on what barriers needed to be overcome to achieve the targets for zero-emission cars. The Department for Transport told us it had undertaken a lot of research into this area, and the two most substantial factors had been price and range anxiety—the …
Government response. 2.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021. 2.2 The government wants consumers and businesses across the UK to benefit from the transition to ZEVs. The 2035 Delivery Plan set out key commitments, funding and …
HM Treasury
8
Conclusion
First Report - Low emission cars
The Department told us it has used the plug-in car grant, which reduces the purchase cost of qualifying new cars, to address the price barrier.13 The grant has been incrementally scaled back since 2018, and at the time of our evidence session contributed up to £3,000 off the purchase price …
Government response. 2.3 Affordability: The government’s plug in vehicle grants provide money off the up-front purchase price for people making the switch to EVs. Tax incentives are also available, including favourable company car tax rates, which can save drivers over £2,000 a …
HM Treasury
9
Conclusion
First Report - Low emission cars
Upfront costs are not the only element making electric cars costly.16 We were concerned about the cost of replacing batteries, especially for second-hand cars, and asked the Departments to explain how this is going to be managed. The largest part of the cost of an electric vehicle is the battery, …
Government response. 2.3 Affordability: The government’s plug in vehicle grants provide money off the up-front purchase price for people making the switch to EVs. Tax incentives are also available, including favourable company car tax rates, which can save drivers over £2,000 a …
HM Treasury
10
Conclusion
First Report - Low emission cars
We asked what the Departments were planning to do about the higher cost of charging on the public network compared to home charging.18 A National Audit Office analysis of public data suggests that charging at home can cost between 59% and 78% less than charging on the public network.19 The …
Government response. 2: PAC conclusion: There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. 2: PAC recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to …
HM Treasury
11
Conclusion
First Report - Low emission cars
The Department for Transport acknowledged range anxiety as a barrier to take-up and is providing investment for infrastructure, specifically focusing on public and rapid charging. However, it told us that because 99% of all journeys are under 100 miles, electric cars are suitable for many journeys. It accepted that there …
Government response. 2: PAC conclusion: There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. 2: PAC recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to …
HM Treasury
12
Conclusion
First Report - Low emission cars
There is regional variation in the uptake of ultra-low emission cars in the UK, for example high levels of take-up in southern England, and we have been concerned about whether some locations, including rural areas, are missing out on the transition.23 The Department for Transport told us it has not …
Government response. 3: PAC conclusion: We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. 3: PAC recommendation: The Department …
HM Treasury
13
Conclusion
First Report - Low emission cars
The scale and reach of the charging infrastructure has grown over the past decade.26 The Department for Transport informed us that there are now 20,800 public charge-points in the UK, with 783 new charge-points created in the 30 days before our evidence session in March 2021, 124 of which were …
Government response. 3: PAC conclusion: We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. 3: PAC recommendation: The Department …
HM Treasury
14
Conclusion
First Report - Low emission cars
We challenged the Department for Transport on how it would ensure the charging infrastructure expanded in step with its plans for a very rapid expansion in the number of electric cars ahead of 2030. The Department told us it has not set targets for the number and type of charging …
Government response. 3: PAC conclusion: We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. 3: PAC recommendation: The Department …
HM Treasury
15
Conclusion
First Report - Low emission cars
We asked the Departments about their strategy to avoid “notspots” - areas where the market does not deliver because uptake is insufficient, especially for rural areas. The Department for Transport told us that the majority of electric car owners will charge at home overnight and start journeys with 100% charge.31 …
Government response. 3: PAC conclusion: We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. 3: PAC recommendation: The Department …
HM Treasury
16
Conclusion
First Report - Low emission cars
For longer journeys, drivers can access public infrastructure on the strategic road network. The government has funded infrastructure so that on the strategic road network, drivers are never further than 20 miles from a rapid charge-point and will spend £950 million through Project Rapid for rapid charge-points at motorway service …
Government response. 3: PAC conclusion: We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. 3: PAC recommendation: The Department …
HM Treasury
17
Conclusion
First Report - Low emission cars
The Department for Transport informed us there will now be a “shift” in focus from funding for home charging to on-street and other publicly available local charging. The government has doubled investment for the current year for the on-street residential charge scheme and will be doubling it to £20 million …
Government response. 3: PAC conclusion: We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. 3: PAC recommendation: The Department …
HM Treasury
18
Conclusion
First Report - Low emission cars
We questioned the Departments about the overall environmental and social impacts of the production and use of electric cars and whether they had undertaken analysis of the full lifecycle impacts of these vehicles, including production and disposal. The Department for Transport informed us that it has looked at the lifecycle …
Government response. 4: PAC conclusion: The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. 4: PAC recommendation: The Departments …
HM Treasury
19
Conclusion
First Report - Low emission cars
The proportion of emissions is greater in the manufacturing phase than during the on- the-road phase for electric cars, which means the geographical location of manufacturing is an important factor.44 The Department for Transport believed that car manufacturers are “very cognisant” of the location of car assembly as this can …
Government response. 4: PAC conclusion: The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. 4: PAC recommendation: The Departments …
HM Treasury
20
Conclusion
First Report - Low emission cars
With regard to the materials and supply chains used in producing zero-emission cars, the Department for Transport acknowledged the issues and told us that manufacturers are focused on developments in this area. For example, Tesla and Renault are looking at developing batteries and electric motors which do not use rare …
Government response. 4: PAC conclusion: The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. 4: PAC recommendation: The Departments …
HM Treasury
21
Conclusion
First Report - Low emission cars
There are a range of other issues that will need to be considered as part of the transition to zero-emission cars. We are concerned about the impact of lost taxes from fuel duty and the potential standstill in technological change for the internal combustion engine.48 The Department for Transport explained …
Government response. 5.5 Tax implications: The government will need to ensure that the tax system encourages the uptake of EVs. Revenue from motoring taxes needs to keep pace with this change, to ensure government can continue to fund the first-class public services …
HM Treasury
22
Conclusion
First Report - Low emission cars
We questioned the Departments about issues we had heard about businesses not able to charge vehicles indoors overnight due to their insurance policies. The Departments did not seem aware of this issue and when the Departments wrote to us, they stated the government does not intend to intervene in commercial …
Government response. The government does not intend to intervene in commercial decisions by insurers as this could damage competition in the market.
HM Treasury
23
Conclusion
First Report - Low emission cars
Another issue to be considered by the Departments is that, as more zero-emission cars enter the market, there will need to be people with the right skills in place to maintain them. The Department for Transport told us that this transition has already started and ensuring training is in place …
Government response. 5.3 Skills: The DfT is working with the Institute of the Motor Industry to ensure the UK’s workforce of mechanics are well trained and have the skills they need to repair EVs safely. The automotive sector is also participating in …
HM Treasury
24
Conclusion
First Report - Low emission cars
The Department for Business, Energy & Industrial Strategy, having assessed a number of different scenarios for meeting net zero by 2050, has estimated that electric cars will increase electricity demand by around 20% by 2050 and we wanted to understand the network’s ability to cope.53 The Department explained that the …
Government response. 5.4 Preparing the electricity grid: The Energy White Paper (December 2020), sets out government’s plan to ensure electricity networks are prepared and able to integrate EVs at the same time as other technologies such as heat pumps and new low …
HM Treasury