Demand for electric vehicles will suffer a fresh blow next year when buyers of even modest family cars are hit with a new luxury tax.
Industry groups are lobbying Rachel Reeves, the chancellor, to scrap plans to extend the “expensive car supplement” to EVs from April next year.
Under the plans, EVs registered after April 1 with a list price of more than £40,000 will join other vehicles in being liable for additional vehicle excise duty (VED).
It will cost £425 a year and is liable for five years from the start of the second year of ownership.
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All EV owners will also have to pay standard VED for the first