What If Every Car Was Electric?January 8, 2013
Price comparison company MoneySupermarket has completed a study looking at the impact on the UK economy if every vehicle on the road was electric. It was found that the average motorist would reduce their annual motoring expenditure by £952.08. However, this was not the headline figure.
Perhaps the most startling statistic to come out of the study was that it would cost the UK government £24 billion in lost tax each year if every motorist in the country suddenly became an electric car convert. Unsurprisingly, fuel duty made up approximately 80% of this total; with UK motorists facing the highest fuel duty rates in the whole of Europe.
The rest of the total is made up of lost road tax charges, congestion charging and less substantially a reduced income from tax placed on car insurance premiums, which would be on average about 5% cheaper for electric car owners. This obviously highlights just how much the UK government relies upon motorists to support the economy.
If this scenario becomes a reality, it is expected that the government will place a higher tax rate on either electricity of potentially even road tax.
MoneySupermarket has published the key findings from its research in the following infographic:
Image source: MoneySupermarket Car Insurance