Electric Vehicles: Transition by 2030

Grahame Morris Excerpts

Thursday 9th December 2021 Westminster Hall

[Grahame Morris (Easington) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Twigg. I congratulate the hon. Members for Bath (Wera Hobhouse) and for Richmond Park (Sarah Olney) on securing this important and timely debate.

If the UK is going to meet our legally binding pledge to meet net zero by 2050, we need to step up the transition to a green economy and deliver more sustainable transport options. I was pleased that the hon. Member for Bath mentioned the importance of the national grid to EV charging. I was reflecting that we were the victims of the most appalling storm—storm Arwen—two weeks ago. It showed up a systematic lack of investment in the power grid system in the north-east, as many thousands of my constituents were left without the most basic of utilities—power—for over 10 days. I am trying to understand how my communities would have survived if we were solely dependent on electric vehicles. If we are going to facilitate the transition to a green economy, the Government need to get the basics right and climate-proof our power grid.

The basic infrastructure required to facilitate electric vehicles does not exist in communities such as mine in Easington, County Durham. There is a massive disparity between the capital and the rest of the country in terms of accessing charging points, with more public charging points in London and the south-east than in the rest of England and Wales combined. We also need to advance technology, because until we have wireless, accessible, on-street parking charging points, replacing conventional vehicles with EV vehicles is not a viable option for people living in built-up areas—in my case, in former colliery terraces or blocks of flats.

We are potentially falling into a trap when it comes to infrastructure, so the Government need to change their mindset and, rather than focusing on the one-to-one replacement of vehicles, create an affordable, frequent and reliable public transport network. That should be the foundation for creating a sustainable green economy.

I frequently complain about the Northern Rail failure on the Durham coastline that serves my constituency. The service is unreliable and dangerous, and I can see the potential of improved public transport. You might be wondering, Mr Twigg, what that has to do with electric cars, but the subject of the debate is electric vehicles, and it is important that we consider what the options are.

Despite often-repeated Government rhetoric about levelling up, the transport infrastructure gap in the UK is widening. Improved public transport can deliver employment opportunities. My constituency is very close to Nissan in Sunderland, and I accept that there are many jobs in the automotive manufacturing sector and in the manufacture of EV battery technology. Indeed, Nissan in Sunderland is Europe’s biggest and most efficient car plant. I should declare an interest as a member and chair of the Unite group in Parliament. Nissan provides employment for many thousands of people, including many in the supply chain in my constituency.

However, there are other businesses that could benefit from this technological revolution. Vivarail, for example, is the only domestically based manufacturer of battery-powered trains in the UK. It has a production site in my constituency. Its cutting-edge green technology and innovative, fast-charging battery-electric train has enormous domestic and, indeed, export potential. Vivarail showcased its clean, green and reliable service in Glasgow at COP26, hosting my colleague, the Chair of the Transport Committee, the hon. Member for Bexhill and Battle (Huw Merriman), who saw the fast-charging battery-powered train that was on show.

Many people want affordable and reliable green options, but making the switch to electric vehicles is difficult because of the up-front cost. We know that the long-term financial benefits of electric vehicles, which have been pointed out in the debate, include lower running and servicing costs, but there is an up-front barrier in making the transition. We need greater Government incentives until such time as entry costs for new and used vehicles fall.

One issue, which was highlighted by the Transport Committee, on which I have the honour to serve, is the cost of VAT. I raised that with the Minister in the Fourth Delegated Legislation Committee yesterday, and I am afraid that I did not get an answer. The current policy on VAT on charging points penalises electric vehicle owners who do not have access to private parking and their own charging points. Those without access are forced to use public charging points and pay four times the VAT. Her Majesty’s Revenue and Customs says:

“Supplies of electric vehicle charging through charging points in public places are charged at the standard rate of VAT”,

which is 20%. It goes on:

“There is no exemption or relief that reduces the rate of VAT charged.”

I know that the Minister is not responsible for tax policy, but will she raise that issue with Treasury colleagues?

This debate is far from simple, and a comprehensive approach is required. The transition to electric vehicles is a once-in-a-generation opportunity to transform public transport and create a cleaner, greener and stronger economy in places such as east Durham. If only we had an ambitious Government willing to seize the opportunity and spread the benefits more equally.

[Derek Twigg (in the Chair)]

I again remind hon. Members that they should keep to around six minutes. I will call the Front-Bench spokesperson and the Minister no later than 2.30 pm.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Trudy Harrison)]

It is a pleasure to be part of the debate and to serve under your chairmanship, Mr Twigg. I thank the hon. Member for Bath (Wera Hobhouse) for raising this subject, and all hon. Members who have spoken for their enthusiastic and passionate contributions about electric vehicles.

I will outline some of the support that the Government are providing for electric vehicles, before running through some of the questions from hon. Members. We have committed £2.5 billion in funding for vehicle grants and infrastructure to meet a very ambitious carbon target. We anticipate that up to quarter of the 36 million cars and vans on UK roads will be electric by 2030. As we can see from the data released by the SMMT recently, the pace of the transition is really accelerating. Industry data shows that almost as many battery electric vehicles were sold in September as in the whole of 2019, and that nearly one in five new cars sold in November 2021 was fully electric.

The journey is not just about the vehicles, however. As has been said, drivers will frequently need world-class charging infrastructure to support the full range of journeys and vehicles in our electric future. Rather than leaving that to the market, this Government have intervened: the Prime Minister announced his 10-point plan for net zero, which will phase out the sale of new petrol and diesel cars and vans in the UK by 2030, as hon. Members have said. From 2035, all new cars and vans must have zero emissions at the tailpipe. In response to questions about the definition of hybrid, that definition is being worked on as I speak, and we will be able to update Members on those conclusions very shortly.

In October, the Government announced in our net zero strategy that we would introduce a zero emission vehicle mandate, which would come into force from 2024. The idea is to help the phase-out dates by setting targets for a percentage of a manufacturer’s annual new car and van sales in the UK to be zero emissions from 2024. Alongside our ambitious phase-out dates, we have also announced £1.3 billion to accelerate the roll-out of charging infrastructure, ensuring that drivers can charge where they need to and more easily than refilling a petrol or diesel vehicle. We are doing that through the Office for Zero Emission Vehicles.

Funding is available to support charge point infrastructure in homes, at workplaces, on residential streets and across the wider roads network. We have Homecharge, which provides £350 to homeowners to install charge points, and we have had about 230,000 householders take advantage of that. We have the on-street residential charge point scheme, which provides up to £13,000 per charge point to local authorities to install charging infrastructure, and the workplace charging scheme, which offers £350 per charge point. We have the local EV infrastructure fund, the charging infrastructure fund, the rapid charging fund—the Government are providing a wealth of support and building on the £1.9 billion from the spending review 2020, and we have committed an extra £620 million of this year’s spending review to support the transition to electric vehicles.

[Grahame Morris]

The Minister is being generous in giving way, and I am grateful for her listing all the investments and so on that have come through her Department, but has she had a chance to address the issues that I raised yesterday in a Delegated Legislation Committee, and indeed that the Transport Committee has raised, regarding the differential rate of VAT? Not everyone can have their own personal charging point if they live in a terraced house or a block of flats.

[Trudy Harrison]

The hon. Gentleman makes a common-sense point. We are looking at this, and I will, as he suggests, speak with my colleagues in the Treasury to see what we can do. I do think that the Treasury is playing an important part in this transition, but we need to work more with local authorities. Members across the House should work with their local authorities and with me, because, with their leadership and action through local transport and planning policies, we can really help to support the local zero-emission vehicle uptake, and make sure that it is integrated with local transport strategies.

The Government will publish an EV infrastructure strategy shortly. That strategy will define our vision for the continued roll-out of a world-leading charging infrastructure network across the UK, and focus on how we unlock the charge point roll-out needed to enable the transition from early adoption to the mass market uptake of EVs.

--- Later in debate ---

[Trudy Harrison]

I will take away that request, but I can tell the hon. Member that 26,000 public charge points are available and that of those 4,900 are rapid chargers. We also have a plan to install 750 kW as a minimum in all the 117 motorway service areas—and that absolutely includes the motorway services on the A1(M) at Ferrybridge at junction 41 and those at Wetherby at junction 46.

I commend my hon. Friend the Member for Broxtowe (Darren Henry). A couple of weeks ago, I had the absolute joy of visiting HORIBA MIRA in Nuneaton, where I saw the technology and innovation that is supporting not just decarbonisation but the connected and automated vehicles—they were was abundant with UK content, as the hon. Member for Leeds North West (Alex Sobel) said—that the country will need to be at the forefront. The technology that I saw at Nuneaton will be critical to the transition, and the midlands engine is at the forefront of it. I am delighted that my hon. Friend came to the debate to talk about that.

I am running out of time, but I want to address the lack of driveways. We want to ensure that no driveway is no problem. We understand the need to roll out publicly available charge point infrastructure, and local authorities are key to that. We are therefore putting together a toolkit with advice and, most importantly, resources for where local authorities are struggling to deliver. My message to hon. Members across the House is to work with me and with local authorities, because they will know their local areas best. The Department wants to ensure that we have fair, accessible, affordable, reliable and transparent charging infrastructure right across the UK.

[Grahame Morris]

The Minister is being kind. I am afraid that she has not addressed the resilience of the national grid and its importance to charging. The BEIS Committee has just produced an interesting letter and report.

[Trudy Harrison]

That is a matter for BEIS, which it is clearly taking seriously. I work continuously with colleagues in BEIS as well as those in the Department for Environment, Food and Rural Affairs on clean air zones. I will leave it there to allow the hon. Member for Bath to wrap up.