Car tax changes could see millions of SUV drivers slapped with extra costs every year

Transport and Environment UK (T&E) highlighted the success of the Zero Emission Vehicle mandate in helping an increasing number of Britons have access to an electric car.

It noted that the mandate, which requires manufacturers to have a certain percentage of sales come from electric cars, was helping boost the supply of better and cheaper battery electric vehicles.

Research shows that higher upfront costs have resulted in the absolute cheapest EV lease being £141, despite the bottom half of UK earners typically spending under £100 a month on leasing or car purchases.

T&E argues that strong policy measures can unlock cheaper running costs for electric cars, especially for those with less disposable income.

A "Pure Social Leasing" scheme has been recommended by the campaign group, which would offer households a small EV on an eight-year subsidised lease.

Similarly, a "Bundled Lease" option would apply for car-dependent drivers, like key workers or rural residents, with costs as low as £222, including insurance, maintenance and charging costs.

Eloise Sacares, senior researcher in UK vehicles policy at T&E UK, said: "Currently, with the cheapest EV lease at £141 a month, those on low incomes are priced out and unable to benefit from lower running costs.

"By bringing leasing costs down to as low as £77 a month, we can ensure that EVs are accessible and reduce bills for all."

It has also called for a "Large Vehicle Levy" to be introduced that would target heavy, high-polluting SUVs, which has gained support in recent years.

New laws have been introduced in a number of major cities which aim to crack down on large SUVs, including expensive parking costs or the lesser ability to receive parking permits.

Residents of Paris voted to triple SUV parking charges, with SUV owners facing costs of €18 an hour, or £15.63.

Since then, socialist mayor Anne Hidalgo has called for SUVs to be completely banned from the French capital, citing road safety concerns.

T&E has also backed the introduction of another policy adopted in France, namely its social leasing initiative from December 2023.

While the scheme was only earmarked to support 25,000 vehicles, a staggering 90,000 households applied within six weeks.

Campaigners argued that this proved there was a strong appetite among lower-income drivers that they wanted to ditch their older petrol and diesel models for EVs.

A final recommendation from the campaign group includes a "Scrappage-for-Leasing" discount. This would allow drivers to scrap old petrol and diesel cars for £2,000, which is applied as a monthly discount on a new EV lease, potentially slashing costs to just £156 a month.

Ms Sacares continued, saying: "The best thing about social leasing for electric vehicles is that it can be sustainably funded by a new Large Vehicle Levy on large SUVs.

"This could fund 179,000 households a year to take part in the scheme, all the while reducing air pollution, and household bills."