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The Government has confirmed the Plug-In Car Grant will be extended until 2022-23 as part of a raft of Budget announcements.

The grant itself has been cut from £3,500 to £3,000 and is effective immediately, while cars costing more than £50,000 are excluded. The Department for Transport these changes “will allow more drivers to benefit from making the switch for longer.”

As before, electric van owners can save up to £8,000 on the cost of a new LCV.

From April, zero emission cars will be exempt from the ‘expensive car’ first-year VED supplement for vehicles costing over £40,000., which currently stands at £310 a year for years 2-5, however, a call for evidence has been launched on how a VED reform could lower emissions, with the Government suggesting a a granular system, whereby the first licence VED liabilities would be calculated exactly according to the carbon emissions recorded on a vehicle model’s certificate of conformity, for example with an owner of a vehicle that emits 129g/km of CO2 paying less than someone with a vehicle that emits 130g/km of CO2.

ICFM and ACFO say Tory win paves the way for 0% EV BIK rates from April - Gallery Image - PHEV plugged-in and charging

The Government has also confirmed it will carry out a manifesto pledge to provide £500 million over the next five years to support the rollout of a fast-charging network for electric vehicles to “ensure that drivers will never be further than 30 miles from a rapid charging station,” while it added the Office for Low Emission Vehicles will complete an electric vehicle charging infrastructure review.

Fleet drivers have also been given reassurances surrounding company car tax rates as the Government said it will freeze rates at the 2022-23 levels for a further two years until 2024-25.

Fuel duty will also remain frozen for a 10th year in a row, saving the average car driver £1,200 since 2010, the Government added.

The Government has also confirmed it will spend £500 million a year on filling in potholes, suggesting this fund will fill in around 50 million potholes across the country in the next five years.

That pothole fund is on top of a £27 billion investment programme into roads over the next five years, with schemes targeted including dualling the A66 Trans-Pennine and upgrading the A46 Newark bypass, improving the M60 Simister Island, building the Lower Thames Crossing,    building a new dual carriageway and a two-mile tunnel to speed up journeys on the A303, and to remove traffic from Stonehenge.