Ford boss urges Chancellor Rachel Reeves to help drivers pick electric vehicles

Chancellor Rachel Reeves' Budget on October 30 is an important opportunity for the Government to help UK motorists along the transition to zero emission vehicles, according to the boss of Ford.

Ford of Britain managing director Lisa Brankin argues that if prime minister Kier Starmer’s government wants the new car market to meet its ambitious targets for electric car adoption then it must introduce more initiatives to stimulate retail new car buyers to choose zero emissions models.

Like the Society of Motor Manufacturers and Traders of which Ford is a member, the car brand thinks halving the VAT rate to 10% for electric vehicles would be helpful.

Taxation incentives in the fleet sector have demonstrated that uptake can be driven. Car brands have the pressure of rapidly rising annual targets under the Zero Emission Vehicle Mandate, and Brankin said: “Without incentives it will be hard to get to the targets. That’s why we’re calling for customer incentives.”

Ford of Britain has launched the Explorer electric SUV this year, its first zero emissions new model since it introduced the Mustang Mach-E in 2020.

“We need incentives to drive demand in the consumer market,” Branklin told Automotive Management at a media briefing.

Adoption of plug-in vehicles is even lower in the light commercial vehicle market, and Brankin would also like to see an extension of the Plug-In Van Grant which is scheduled to end in spring 2025.

Faced with the threat of substantial fines if it misses the ZEV Mandate targets in the next few years, Ford has plotted various strategies to manage this threat. One is to reduce its registrations of petrol and diesel cars to maintain the balance.

Branklin said: “We don’t want to restrict supply. It might have to happen, but that’s not what we’re planning to do.”