Major change impacting over 1.5million drivers could be confirmed TOMORROW – and saves you £200 a year
A HUGE change to motor laws could save drivers up to £200 - if Parliament approves it tomorrow.
The major overhaul is expected to affect 1.5 million drivers across the UK.
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On Friday, MPs will meet in the House of Commons to discuss slashing VAT when using electric charging points.
The bill - named The Exemption from Value Added Tax (Public Electric Vehicle Charging Points) Bill - will be read for the second time in parliament tomorrow.
Currently, motorists pay 20 per cent VAT when charging their electric vehicle, which means the new law could save drivers hundreds of pounds.
According to data from Zapmap, EV drivers spend £1,690 on charging their cars per year.
With the bill proposed by Labour, that cost could fall by a staggering £211 per year.
Daniel Kunkel, the CEO at sustainable energy company GRIDSERVE, said: "Removing VAT from public charging would be a significant move towards levelling the playing field and making EV ownership easier for everyone, no matter where they live.
"The current disparity between the 20 per cent VAT on public EV charging and the per cent on home charging puts a disproportionate financial burden on those without home charging facilities, which could affect more lower-income households.'
It is hoped that the move will encourage more drivers to give up diesel and petrol cars for good, as the Labour government continues to pursue its Net Zero goal.
The UK has a legally binding obligation to hit the target by 2050, after the then-Prime Minister Theresa May signed the commitment into law.
The plans to slash VAT costs for drivers come just days after Chancellor Rachel Reeves delivered her spending review.
In her speech, the Chancellor said she would be injecting a staggering £300 billion into public services.
The defence sector and the NHS were the biggest beneficiaries, with the National Health Service receiving a huge £29 billion cash boost.
A staggering £39 billion will be injected into the housing sector, in a major drive to build social and affordable housing.
The controversial Winter Fuel Payment cuts are being rolled back too, with three-quarters of pensioners being eligible for the seasonal payment once again.
In a bid to support their Net Zero mission, the government also announced that construction would begin soon on a £14billion Sizewell C nuclear power plant - which will provide electricity for six million homes and create over 10,000 jobs.
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