Why the UK government has extended the plug-in grant scheme
The extension of the business van grant scheme isn’t a big surprise when we look at the UK government’s plans for transport. The Department of Transport is fully committed to phase out fossil fuel vehicles (petrol and diesel). So, incentives for electric vehicles and more congestion charges are to be expected.
We’ve broken down all the reasons the new business van grant has come to be to help you prepare. Here’s what you need to know.
Emissions from vans and trucks
The government is likely eager to push funding towards vans and trucks as they account for a large percentage of UK transport Co2 emissions. Vans account for 17% of all Co2 emissions from transport in the UK and HGVs aren’t far ahead at 18%.
The UK government’s own analysis found that in the past few years, most modes of transport have decreased their CO2 emission levels. Except for vans. ‘Van emissions have increased by 8 MtCO2 e since 1990 (a 65% increase)’. It’s no wonder then that we see the plug-in grant focus shifting from electric cars to vans and trucks.
Cutting back on oil
In 2022, we all know how volatile the oil market can get. While in the UK we only get around 6% of our oil from Russia, any price changes affect the whole of the market.
According to the Department of Transport, extending the business van grant ‘will help make the UK less reliant on imports of foreign oil, improving the security of our energy supply and reducing our vulnerability to volatility in global energy prices.’
Whether the extension and changes were a direct response to the current oil market or a planned change long in advance, we think it’s clear that the plug-in grant is here to stay.