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<p>The plug-in car grant (PICG) was introduced in 2011 to support the early market
for ultra low emission vehicles (ULEVs). Through the PICG we have supported the purchase
of over 200,000 plug-in vehicles, including around 100,000 plug-in hybrid vehicles.
Last year, in light of increased demand and decreasing prices, we reviewed the PICG
to focus on the cleanest vehicles. While sales of plug-in hybrids have decreased since
the grant was reviewed, sales of zero emission cars are up by more than 60% in 2019
so far than for the same period in 2018. Overall, sales of all alternatively fuelled
cars have increased this year, compared to the same period last year. In our Road
to Zero Strategy we set out ambitions for uptake of ULEVs in the UK, and stated that
consumer incentives in some form will continue to play a role beyond 2020. In addition,
to accelerate the shift to zero emission cars, all zero emission models will pay no
company car tax in 2020-21, 1% in 2021-22 before returning to the planned 2% rate
in 2022-23 – a significant tax saving for employees and employers.</p><p> </p>
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