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Question for Department for Business, Energy and Industrial Strategy

UIN 18533, tabled on 18 June 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, if the Government will introduce a car scrappage scheme which incentivises people to replace their higher-polluting vehicle with an electric or hybrid vehicle.

Answered on

28 June 2021

The Government is providing significant support to consumers and businesses to purchase and run ultra-low emission vehicles and therefore has no plans to introduce a car scrappage scheme.

The Government has already committed £1.5 billion to support the early market and remove barriers to zero emission vehicle ownership. Alongside the new phase out dates of 2030 and 2035 my Rt. Hon. Friend the Prime Minister announced in his Ten Point Plan in November, we have pledged a further £2.8 billion package of measures to support industry and consumers to make the transition to zero emission vehicles. This package includes up to £1 billion for R&D and capital investments in strategically important parts of the electric vehicle supply chain, £1.3 billion to accelerate the roll out of charging infrastructure and £582 million for plug in vehicle grants.

Additionally, the Government already provides a number of subsidies for consumers and businesses to purchase and run ultra-low emission vehicles, including the plug-in car and van grants (£2,500 towards eligible cars costing less than £35,000, small vans can receive up to £3,000 and large vans up to £6,000) lower tax rates, and grants towards the installation of chargepoints.

The transition to zero emission vehicles will help meet greenhouse gas reduction goals, contribute to reducing poor air quality in our towns and cities and can contribute to economic growth in the UK by providing skilled jobs in the automotive sector.