Getty ImagesThe government is facing a backlash from car manufacturers, who claim that current rules designed to promote electric vehicles are too harsh.
They say consumer demand for electric cars has fallen far short of what was expected, meaning they are struggling to sell enough.
Ford insists this was a factor in its recent decision to cut 800 UK jobs.
Vauxhall’s owner Stellantis is to close its van-making plant in Luton – partly, it says, because of the new rules.
So what could be done to encourage more consumers to buy electric?
1. Subsidise the cost
Electric vehicles (EVs) are generally more expensive to buy than their petrol or diesel equivalents. This is partly because they still represent a relatively small proportion of cars being built, so economies of scale – when the cost comes down the more you build – have not yet properly kicked in.
The government already offers some subsidies to make EVs cheaper. They attract a low rate of company car tax, for example. Salary sacrifice schemes allow workers to lease cars cheaply through their employers, using their untaxed income,…
