Select Car Leasing recently welcomed Liberal Democrat MP Clive Jones to its Reading headquarters. This gathering aimed to discuss measures for speeding up the UK's shift towards electric vehicles (EVs). Alongside Mr. Jones, representatives from the British Vehicle Rental and Leasing Association (BVRLA) also participated. Key figures such as Select Car Leasing's Joint CEOs Mark Tongue and James O'Malley, Head of Select Electric Shane Pither, and Senior Account Manager Dee Edwards were present.

Key Discussion Topics and Concerns

The meeting focused on several important aspects. Disparities in the cost of home versus public charging were a major concern, along with the need for enhanced government incentives to promote wider EV adoption. Mr. Jones was presented with proposals to raise the Expensive Car Supplement (ECS) threshold for EVs from £40,000, as the current policy was seen to potentially deter EV uptake due to higher upfront costs compared to internal combustion engine vehicles. Zohra Chagani, Senior Policy Advisor with the BVRLA, emphasized the significance of strengthening the used EV market to boost demand and stabilize residual values. Additionally, the group discussed the implications of a recent Court of Appeal ruling that requires brokers to obtain customers' fully informed consent before earning commissions from lenders. This decision has the potential to bring about industry-wide changes.

Challenges Faced by EV Customers

Shane Pither, Select's newly appointed Head of Electric, shed light on the challenges faced by EV customers, particularly fleet drivers and those without home charging solutions. He also highlighted the impact of the upcoming loss of the EV installation grant after March 2025, which adds complexity for businesses and individuals. This issue further emphasizes the need for comprehensive support and infrastructure development.

Growing Receptiveness of Lease Customers to EVs

Mark Tongue, Joint CEO of Select Car Leasing, noted that currently, 38% of the vehicles leased by the company are either fully electric or plug-in hybrid, which is significantly higher than the automotive industry's market share. This shows the increasing acceptance of EVs among lease customers. He emphasized the importance of legal clarity on commission disclosure to maintain transparency within the sector.

Call for Government Support

BVRLA's Zohra Chagani stressed the sector's need for government support. Collapsing used battery electric vehicle (BEV) values pose an immediate risk to the stability of the leasing industry. Clive Jones' visit was seen as a timely show of support for the sector, which plays a crucial role in the transition to cleaner and greener road transport. During the visit, Mr. Jones advocated for increased investment in EV charging infrastructure and parity in VAT rates on electricity. Public EV charge points currently incur a 20% VAT rate, while domestic electricity has a 5% rate. This disparity acts as a barrier for those unable to charge an EV at home. The Liberal Democrats have also called for the return of plug-in grants for EVs and the introduction of grants to convert internal combustion engine vehicles to electric. Mr. Jones reiterated his party's commitment to addressing the climate crisis and air pollution. "We want EVs to be an affordable and practical option for everyone. The Government must take immediate action to increase charging points, reform vehicle taxation, and cut VAT on EVs," he said.Clive Jones, elected MP for Wokingham in July's general election and the Liberal Democrat spokesperson on trade, is actively involved in promoting these initiatives. His efforts aim to drive the UK's transition to a more sustainable and environmentally friendly transportation system.