Grants for new electric cars to be reintroduced
Officials hope the measure – restricted to vehicles priced at up to £37,000 – will encourage more drivers to switch to electric motoring.
The DfT said 33 new electric car models are available for less than £30,000.
The Government has pledged to ban the sale of new fully petrol or diesel cars and vans from 2030.
Transport Secretary Heidi Alexander said: 'This EV grant will not only allow people to keep more of their hard-earned money – it'll help our automotive sector seize one of the biggest opportunities of the 21st century.
'And with over 82,000 public chargepoints now available across the UK, we've built the infrastructure families need to make the switch with confidence.'
Drivers buying electric cars can benefit from tax breaks if their employer has a company car scheme, but there have been no universally available grants since they were axed by the Conservative government in June 2022.
The new grants will be funded through a new £650 million scheme.
Amounts will be based on a car's 'sustainability criteria', the DfT said.
The greenest vehicles will be in band one, which means a grant of up to £3,750.
Band two vehicles will receive up to £1,500.
Car manufacturers will be able to apply for the money through the Electric Car Grant from Wednesday.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the announcement is a 'clear signal to consumers that now is the time to switch'.
He went on: 'Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just one in four today, to four in five by the end of the decade.'
RAC head of policy Simon Williams said discounted cars should start appearing at dealerships 'within weeks'.
He added: 'As the biggest savings will be given to cars with the strongest green manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.'
Dan Caesar, chief executive of lobby group Electric Vehicles UK, said: 'While battery-only EVs are much cheaper to buy and run than most realise, surveys show that cost misperceptions are the primary reason for hesitance.
'A generous grant of this nature gives a new group of interested buyers a gentle nudge.'
Ian Plummer, commercial director of online vehicle marketplace Auto Trader, said 'any incentives' to help people buy an electric car are welcome as many drivers are 'put off by the high upfront cost'.
The DfT announced last week that road signs for electric vehicle charging hubs will be introduced on major A roads in England.
It also launched a £25 million scheme for local authorities to support residents without off-road parking to recharge electric cars using cables connected to their homes which run along gullies embedded in pavements.
Under the Government's zero emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission, which generally means pure electric.
Across all manufacturers, the figure during the first half of the year was 21.6%.
Prime Minister Sir Keir Starmer announced in April that sales of new hybrids that cannot be plugged in will be permitted to continue until 2035.
Changes to the Zev mandate also mean it will be easier for manufacturers who do not meet the targets to avoid fines.
Conservative shadow transport secretary Gareth Bacon accused the Government of 'forcing families into more expensive electric vehicles before the country is ready', adding the reintroduction of grants would mean 'more pain for taxpayers'.
He said: 'Last year, only one in 10 private purchases of new cars was electric. This is a product people demonstrably do not want.
'Last week, the Office for Budget Responsibility made clear the transition to EVs comes at a cost, and this scheme only adds to it. Make no mistakee: more tax rises are coming in the autumn.'
The Conservative Environment Network also described the grants as 'a waste of taxpayers' money', given declining prices for electric vehicles, but urged the Government to invest in charging infrastructure instead, 'giving confidence to a new generation of drivers to go electric'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
an hour ago
- Glasgow Times
Chancellor's Leeds Reforms to put money in people's pockets
Changes include reforming the bank ring-fencing regime and reducing red tape in the City in order to reintroduce 'informed risk-taking' into the financial system, the Government said. In the Chancellor's Leeds Reforms, Rachel Reeves has unveiled a package of reforms to the UK's financial system set to be the biggest in a decade, aimed at delivering economic growth and spurring on retail investing. The Chancellor said the 'Leeds reforms', unveiled in the West Yorkshire city, 'represent the widest set of reforms to financial services for more than a decade'. New measures are intended to help drive increased levels of investment among both financial firms and individuals. The Treasury said the ring-fencing regime – which was brought in after the 2008 financial crisis to separate banks' retail and investment banking activities – will be reformed. Economic Secretary Emma Reynolds will lead a review into how changes can strike the right balance between growth and stability, including protecting consumers' deposits, it said. Britain is a global outlier in enforcing ring-fencing, and major banks have been divided over whether the system is necessary to protect savers or is overly burdensome. The Treasury said it was backing regulatory reforms for mid-sized banks to free up money for lending and investment. Furthermore, the plans include cutting layers of red tape for businesses in the City. This will see the UK's Financial Ombudsman Service – which settles complaints between consumers and businesses – modernised and simplified to help create a more predictable system and prevent consumer compensation being delayed. It will also speed up changes to the senior managers regime, which was also brought in after the 2008 crisis to vet individuals before they are appointed and hold them accountable for problems and risk-taking. The Government said it will radically streamline the current regime and cut the burden on firms in half. The Leeds Reforms - named after one of our financial services' hubs and a city I'm proud to represent - will deliver the biggest package of reforms to financial services regulation in a decade. Kickstarting economic growth and putting more pounds in people's pockets. — Rachel Reeves (@RachelReevesMP) July 15, 2025 Cuts to City red tape sit alongside efforts to boost the level of investment among individuals. This includes rolling out 'targeted support' from April next year, whereby banks can alert customers with cash sitting in low-return current accounts about investment opportunities. Major banks and financial firms including Barclays, Lloyds, Vanguard and Hargreaves Lansdown are backing a new advertising campaign highlighting the benefits of investing. Risk warnings on investment products could also potentially be watered down as part of a review into possible barriers to investing. The Government also said it will continue to consider reforms to ISAs and savings to strike the right balance between cash savings and investment. Ms Reeves was widely expected to leave cash ISAs untouched in the measures announced on Tuesday (July 15), following speculation that she was planning to cut the annual tax-free allowance in a bid to spark more investment instead. 'We are fundamentally reforming the regulatory system, freeing up firms to take risks and to drive growth,' Ms Reeves told finance chiefs when setting out the reforms in Leeds. Recommended reading: Adam French, consumer expert at says: 'It is encouraging to see steps being taken to make retail investing a less daunting proposition by plugging the advice gap and empowering firms to give more targeted support while maintaining appropriate safeguards. But it is only part of the puzzle. 'It is also essential that we avoid a return to the low interest rates of the past decade which had a significant and often overlooked side effect: skewing investment priorities by driving capital into property instead of more productive areas of the economy. For the Leeds Reforms to work it must be the case that backing the next generation of British businesses looks safer and more rewarding than property speculation.' Brian Byrnes, head of personal finance at Moneybox, adds: "It is encouraging to see steps being taken to support first-time buyers. Enabling people to borrow more is not a silver bullet. What first-time buyers truly need is not just the ability to take on more debt, but meaningful, long-term support to help them start saving and investing earlier in life so they can build up that all-important deposit." Sarah Coles, head of personal finance for Hargreaves Lansdown, also comments: 'It's incredibly positive to see Rachel Reeves take some key steps towards closing the UK's yawning retail investment gap. 'There will be a new era of investment with the advent of new rules allowing companies to offer targeted support to their clients, alongside changes to risk warnings so they actively help retail investors understand their options rather than standing in their way of harnessing the incredible power of investment.'
Scotsman
an hour ago
- Scotsman
Edinburgh shops still selling single use vapes over a month after they were banned
Shops across the Capital are still selling single use vapes – over a month after they were banned across the country. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The Local Democracy Reporting Service was able to buy seven at sites around Edinburgh, with many shops still carrying them in public view. Many shop workers acknowledged they were illegal to sell when asked by an undercover reporter, with one saying customers sought them out because they 'liked the taste'. Others said they were working on clearing out stock, while a handful pled ignorance, saying they did not know the vapes were illegal. Advertisement Hide Ad Advertisement Hide Ad The ban was brought in on June 1 of this year by the Scottish Government over public health and environmental well-being grounds. Similar bans came into effect in England, Wales and Northern Ireland on the same day, with the Scottish ban delayed by two months to line up the start date nationwide. Local democracy reporter Joe Sullivan with the illegal vapes he was able to purchase from several Edinburgh shops. | LDR It had been announced in Scotland in early 2024, giving manufacturers and retailers time to adapt to the change. To be legal, vapes need to be rechargeable, and have the ability for the vape liquid and heating elements inside to be replaced. Vape manufacturers have responded by creating new lines of products that visibly resemble their old disposable ones, but which feature charging ports and disposable pods that contain liquid and new heating elements. Advertisement Hide Ad Advertisement Hide Ad Local authorities have been tasked with enforcing the ban – though a council report in May said the city's trading standards team would need more resources to investigate disposable vapes without reducing their other services. Having seen several stores appearing to stock disposable vapes weeks after the ban came into effect we carried out test purchasing at sites across the city. At one popular city centre retailer, we asked if the store had any disposable vapes on hand. A cashier obliged, and took out ten disposable vapes, laying them out on the counter for us to take our pick. He acknowledged that they were illegal, but said that customers seemed to prefer the taste of the old disposable units over the refillable equivalents many companies have released. Advertisement Hide Ad Advertisement Hide Ad He said: 'The only difference is the battery. But people still want these, they like the taste I think.' The vape we bought there, a Higo Crystal bar, lacks a charging port or a way to replace the liquid inside, making it illegal under the new law. Returning a couple days later, the same shopkeeper denied he sold us the vape, and said the shop did not stock or carry ones not compliant with the ban. At a Southside convenience store, we were able to ask for a cola-flavoured Elf Bar right off the shelf without issue. Advertisement Hide Ad Advertisement Hide Ad When asked if the vape was illegal, the cashier there confirmed it was. He said the store was working on clearing out its stock, and that refills for the newer vapes were hard to obtain. He continued on to say: 'People don't care [whether the vape is disposable], they're the same. The law is pointless without having the refills.' The story was the same at another two city centre newsagents, where we were able to buy a disposable peach ice SKE bar and a disposable cherry cola Elf Bar. One shopkeeper there told us: 'The [refill] pods are hard to get. Our supplier doesn't stock them, we can't buy them.' Advertisement Hide Ad Advertisement Hide Ad The issue of what is legal and illegal was one which seemed to be causing some shopkeepers trouble. At another city centre newsagent we were able to purchase a pineapple peach mango Elf Bar – and when asked if it was compliant with the ban, the shopkeeper seemed to believe it was, telling us, 'you can change the pods'. He was confused when we removed the vape from its packaging, and pointed out that it had no charger or removable refill pods. When we went back to the shop, a different shop worker also thought the vape was legal, saying they had received the non-compliant Elf Bars as part of a shipment two weeks ago. We were also able to buy non-compliant vapes at two more shops in the city, with both stocking them quite openly. All seven stores were asked for comment, however none had responded by time of publication. At each store we asked for a receipt, however most declined to provide them, with some saying they were out of receipt paper and others providing no explanation as to why one could not be given. Advertisement Hide Ad Advertisement Hide Ad The Local Democracy Reporting Service has now passed its dossier of evidence on to Edinburgh Council's trading standards team, who are investigating. We also checked some chain supermarkets for vapes – and managed to find one, the Sainsbury's on Shandwick Place – stocking disposable ones. However, when a cashier tried to ring up the vape, his terminal would not allow him to scan the product. He then cleared the remaining disposable vapes from the shelf behind him. A spokesperson for Sainsbury's said the firm took its 'role as a responsible retailer very seriously', and that it ensures all its stores are compliant with the ban. Advertisement Hide Ad Advertisement Hide Ad A spokesperson for the Scottish Government said: 'Local authorities are responsible for enforcement of the single use vape ban. Day to day enforcement activities are carried out by Trading standards officers employed by each Local Authority. 'The Scottish Government remains in contact with regulators and the other UK nations regarding any compliance and enforcement issues.' The illegal vapes which were purchased at Edinburgh shops despite being banned since June 1. | LDR Alexandra Connell, chair of the Society of Chief Officers of Trading Standards in Scotland, said that trading standards teams need more support in order to tackle the ban. Advertisement Hide Ad Advertisement Hide Ad She said: 'We are a small profession. We [already] have an awful lot of other work that's equally important that we have to get out and do. 'The Scottish Government have identified some monies to help us with enforcement of it. But the mechanisms for how that money gets to us isn't particularly clear [yet]. 'And it's a small pot. Divided between 32 local authorities, it means everybody gets a very small pot of money. 'What we really need is to be properly resourced. We need to recognise that we actually have a huge remit. And our remit seems to be getting bigger, we have new burdens, but as I say, we are a small profession.' Advertisement Hide Ad Advertisement Hide Ad Ms Connell said that trading standards officers often had to prioritise investigating products with the most harm, such as counterfeit or defective children's toys, over enforcement of other products. She also said stopping disposable vapes at the border might be a more cost-effective solution than having council trading standards officers remove them from individual stores. According to her, investigating vapes that aren't compliant with the ban is an expensive and time consuming process. She says trading standards officers need extensive training to identify illegal vapes. And, they sometimes need to take vapes apart, as some will appear to feature charging ports but lack a rechargeable battery. Advertisement Hide Ad Advertisement Hide Ad The process of getting rid of disposable vapes is also challenging – due to their lithium batteries, they need to be appropriately recycled, which does not always come cheap. A spokesperson for Edinburgh Council said: 'Single use disposable vaping devices became illegal on June 1, and any business still offering these for sale is committing a criminal offence. 'Trading Standards Officers may seize the items, issue Fixed Penalty notices or submit reports to the Procurator Fiscal. 'The Trading Standards team will respond to any complaints or reports of non-compliance, which can be sent to or reported via Advice Direct Scotland.'
The Guardian
an hour ago
- The Guardian
French PM may scrap two public holidays to reduce country's crippling debt
France's prime minister, François Bayrou, has proposed scrapping two public holidays as part of radical measures aimed at reducing the country's ballooning deficit, boosting its economy and preventing it being 'crushed' by debt. Outlining the 2026 budget on Tuesday, Bayrou suggested Easter Monday and 8 May could become normal workdays – although he said he was open to other options. May 8th is currently when France commemorates Victory Day, marking the end of the second world war. The centrist prime minister said: 'The entire nation has to work more so that the activity of the country as a whole increases, and so that France's situation improves. Everyone will have to contribute to the effort.' France is under pressure to bring its public deficit, running at 5.8% of GDP, under the 3% figure required by EU rules, and to rein in €3.3tn of public debt – on which the annual interest, of €60bn, could soon become its biggest budget outlay. The debt mountain represented a 'mortal danger' for a country 'on a cliff edge' and 'still addicted to public spending', Bayrou said, outlining steps he said would cut €43.8bn from the budget, reducing the deficit to 4.6% next year and 3% by 2029. Other measures would include an across-the-board freeze on government spending except for debt servicing and the defence sector, which President Emmanuel Macron demanded should be increased by €3.5bn next year and more in 2027. The budget squeeze will also entail keeping pensions at their 2025 level, capping welfare spending and reducing healthcare expenditure by €5bn. Civil service and government agency salaries would be frozen and public sector job numbers cut. The move to scrap public holidays is likely to meet strong resistance, although France has previously discussed combining VE Day with Armistice Day on 11 November, creating a single memorial day for the victims of the first and second world wars. 'Cancelling two holidays is a direct attack on our history, our roots and on working France,' said Jordan Bardella of the far-right National Rally (RN), the largest single party in parliament. 'No RN MP will accept a measure that amounts to provocation.' Other party leaders were equally damning. The proposals were 'an organised hold-up', said Fabien Roussel of the French Communist party. Jean-Luc Mélenchon of the radical left LFI said it was 'time to expel Bayrou' and 'end this destruction, these injustices'. A Socialist party MP, Boris Vallaud, condemned it as 'a brutal and unacceptable budget'. He added: 'Asking always more from those who have little, and so little from those who have much, is neither serious, effective, nor just.' Macron's decision to call a snap election last year delivered a hung parliament in which Bayrou does not have enough votes to pass a budget without the support of the left or the right, both of which oppose his proposals for different reasons. Without an agreement, the veteran prime minister could face a no-confidence motion similar to the one that toppled his predecessor, Michel Barnier, as early as October, when his detailed budget bill is due to go before to parliament.
