Electric vehicle scheme extended

A scheme designed to help business transition from petrol and diesel vehicles to has been extended by two years.

The Department for Transport (DfT) has announced the extension of the plug-in van and truck grant schemes to 2024-25

The scheme aims to support businesses in the transition away from fossil fuel powered vehicles, ahead of the ban on sales of petrol and diesel cars and vans from 2030.

The decision has also been influenced by the need to reduce reliance of Russian oil and foreign fossil fuel imports.

Increasing the uptake of low-emission vehicles will support national air quality and climate change targets.

To date, the scheme has supported the purchase of 26,000 hybrid and electric vehicles.

However, the extension will only support electric vehicles.

The DfT, though, have reduced the amount of grant funding available for applicants from £3,000 to £2,500 for small vans and from £6,000 to £5,000 for larger vans.

The threshold claim for small truck is changing in April, with grants available up to £16,000 for 4.25 tonne trucks (currently 3.5 tonne).

This scheme and many others can be found on the Chamber 's low-carbon support grid, which details the financial and non-financial support available for businesses looking to decarbonise or grow low-carbon products.

This includes grants for installing charging points on business premises.

Will Hargreaves, policy advisor at Greater Birmingham Chambers of Commerce, said: “This is a welcomed move from DfT, and will support the transition away from fossil fuel powered to low-emission vehicles.

“With fuel prices experiencing high inflation, there is demonstratable evidence to justify this.

“Businesses are increasingly exposed to the volatile fuel market, and with electric vehicles being significantly cheaper to operate, businesses can consider adopting low-carbon vehicles as an option to remedy high transportation costs. ”

See the low-carbon support grid here.