Written evidence from RAC (ELV0078) 

RAC written evidence to the Lords Environment and Climate Change Committee - Electric Vehicles

Introduction

The RAC supports the Government’s ambitions to decarbonise road transport. To ensure this transition is a success, the Government should take steps to tackle the real and perceived barriers to mass-market adoption of electric cars, including strengthening public charging infrastructure, providing a grant to make EVs more affordable at the lower end of the market and striving to counter misinformation about EVs in the public domain. 

Drivers who haven’t switched to electric continue to tell us that they feel there isn’t enough public charge points available and 69% of respondents to our Report on Motoring say they would only choose an electric vehicle if they could charge at home. We’d encourage the Government to set targets for the implementation of the public charging network to boost consumer confidence and deliver the measures outlined in the RAC/FairCharge Charging Charter to strengthen visibility, price transparency, and improve the charging experience. The Government should also urgently bring VAT rates for public charging in line with home charging to keep prices down for those without driveways. 

The Government should also ensure that any future plans for a tax regime to replace fuel duty is simple, transparent, and fair to drivers of all vehicles. This should replace, rather than run alongside, the existing taxation system.

Below we have addressed the inquiry’s questions which we believe are relevant to both the RAC’s operations and the motorists which we serve.

RAC and electric vehicles

The RAC provides complete peace of mind to 13 million UK private and business drivers, whatever their motoring needs. We provide breakdown assistance, with a 1,600-strong branded patrol workforce attending more than two million breakdowns every year, fixing on average four out of five vehicles at the roadside. Alongside its premium breakdown assistance services, the RAC offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance, and repair.

The RAC is also at the forefront in helping drivers make the switch to electric vehicles and leads in the development of new solutions for businesses and OEMs. The RAC was the first breakdown assistance company to develop a mobile electric vehicle charger system, EV Boost, capable of giving stranded out-of-charge vehicles a boost from a standard orange RAC patrol van, while its All-Wheels-Up recovery system allows RAC patrols to safely rescue electric cars with no need for a flatbed.

The RAC works to support the interests of its members and UK drivers on the most important motoring issues which it identifies via the annual RAC Report on Motoring and the RAC Opinion Panel. The Report on Motoring is the longest running analysis of driver opinion in the UK having been published every year since 1989. The latest RAC Report on Motoring is online at

www.rac.co.uk/report-on-motoring, and was based upon a survey of a representative sample of 2937 drivers in the UK.

1. What are the main obstacles to the achievement of the Government’s 2030 and 2035 phase-out dates? Are the phase-out dates realistic and achievable? If not, what steps should the Government take to make the phase-out dates achievable?

The deadlines for the sale of new petrol, diesel and hybrid cars are a welcome step towards reducing emissions in the road transport sector and the RAC fully supports efforts to do this.

The feasibility of the 2030 and 2035 phase out dates is a question better answered by manufacturers, as the impact of the sales targets will be most felt on production lines and supply chains. That said, almost half (43%) of drivers surveyed by the RAC in 2023 as part of its Report on Motoring[1] revealed that they expect to drive some form of electrified vehicle in 2030[2], indicating a clear consumer appetite and interest in electric alternatives – although of note is that fact only 14% expect to be in a pure battery electric vehicle (BEV) by this date.

When asked about what type of vehicle they expect to be driving the next time they come to change out of their current vehicle, 13% said battery electric – up from 10% in 2021, but down slightly from 14% last year:

From a driver perspective, a number of challenges – whether real or perceived - continue to hinder EV uptake, including concerns around price and charging access. Of those drivers currently in petrol and diesel vehicles and who do not expect to switch to a battery electric model next time they change them, 61% claim there are not enough public charge points - a figure almost unchanged over the last two years - while 36% state they are put off by the relative high cost of electric vehicles, although this down sharply from 57% in 2021.

In addition, 69% of consumers surveyed expressed they would only choose an EV if they had a private driveway or garage to charge at home, while 81% raised concerns about driving electric vehicles on longer journeys. To ensure the phase-out dates remain achievable, we would encourage the Government to provide regulatory certainty to industry and commit to a national target for the installation of electric charge points, alongside the ZEV mandate. This should set targets for charge point operators and local authorities by year to ensure the target of 300,000 charge points by 2030 is delivered. This would in turn alleviate consumer concerns about availability of infrastructure, providing certainty to manufacturers that demand for EVs exist, and allow the Government to identify gaps in the charging network and take necessary steps to address them.

2. Do the 2030 and 2035 phase-out dates serve their purpose to incentivise the development of an EV market in the UK? To what extent are car makers focusing on one date or the other? What are the impacts of the deadlines on the ability of the UK supply chain to benefit and how could the Government seek to further support the development of the UK EV industry? Would the introduction of a plan with key dates and timescales support the development of the EV industry in the UK?

The 2030 and 2035 phase-out dates of petrol and diesel vehicles serve an important purpose of providing regulatory certainty for manufacturers, setting the wider industry a timescale for investment decisions and infrastructure development as well as giving clarity to drivers. The deadlines ensure that electric vehicles are on the market more quickly and at more competitive prices, feeding into the number of second-hand vehicles available and in turn further reducing emissions more quickly.

The emphasis and merits of specific deadlines within these targets are better answered by manufacturers but ultimately having target dates for delivery is vital for drivers to understand the trajectory of the EV transition and ensure infrastructure keeps pace with demand, relieving range anxiety and boosting consumer confidence in the EV market.

3. What specific national policies, regulations or initiatives have been successful, or have hindered, EV adoption to date? Are these policies or initiatives fit for purpose?

Given the typically higher upfront cost of an electric vehicle, the Government’s Plug-in Car Grant was a hugely helpful initiative to stimulate the early EV market. It was disappointing to see the grant withdrawn in 2022, a move which we believe has hindered EV adoption by increasing the cost of purchase. Moving forward, the Government should reintroduce the grant, specifically targeting the cheaper end of the EV market to make switching to electric more feasible for more drivers. Reintroducing a form of plug-in car grant aimed solely at cheaper electric models would be a bold but ultimately positive move that would tempt people away from petrol and diesel models the next time they change their vehicles.

We also continue to urge the Government to urgently address the VAT discrepancy between charging an electric car at home and on public networks. Currently, those who have to use the public charging network pay a higher rate of VAT (20%) on the electricity they are using, compared to those who can do most or all of their charging at home (5% VAT rate). Levelling the VAT rate on public chargers to 5% would benefit the 33% of drivers without a driveway that rely on the more expensive public network and make going electric an easier choice.

4. Given that the Government should apply a behavioural lens to policy—which involves people making changes to their everyday lives, such as what they purchase and use—is there a role for clearer communication of the case for EVs from the Government? If so, who should take the lead on delivering that?

A number of myths and misconceptions about electric vehicles remain in the public domain and have been fuelled by some recent media coverage. Working alongside motoring organisations such as RAC, we’d like to see greater efforts from the Government to back-up its policy ambitions with clear and strong rebuttals of popular misconceptions to increase consumer understanding and help drivers make an informed choice. The Government should be firm in its objectives and more swiftly challenge negative misinformation, particularly around whether it will reverse its decision to ban the sale of new internal combustion engines by the 2030/2035 deadlines. Ensuring this messaging is clear will provide manufacturers the certainty needed to make business decisions and R&D investments necessary to achieve this objective.

Switching to electric also necessitates some behavioural changes in how drivers fuel their vehicles. While filling up with petrol and diesel is seen as simple, universal and easy to understand, this experience is currently not always replicated in the EV charging sector. The Government’s new Public Charge Point Regulations will go some way to address this, and a much simpler and visible charging experience will support how EVs are communicated to and perceived by non-EV drivers. But we would encourage the Government to consider going further, by reviewing the elements of the UK’s first public charging charter, published in September 2023 by the RAC and FairCharge campaign (online at https://bit.ly/evcharter), which sets minimum standards for public charging with the aim of improving the reliability transparency, accessibility, and usability of the UK’s rapidly growing network.

5. What is your view on the accuracy of the information in the public domain relating to EVs and their usage?

The RAC has challenged a number of inaccuracies about EVs and their usage in recent months on topics including tyre and brake pollution, battery range and the cost of charging. For example, despite the cost of electricity rising rapidly due to war in Ukraine and the energy crisis, electric vehicles charged at home remain an affordable option – on average, it still only costs around 9p a mile to run a family-sized EV charged at home compared to a 40mpg petrol or diesel car at 16p a mile.[3] Despite these significant lifetime cost savings, popular perceptions in the media and among the public paint electric vehicles as more expensive.

Other misconceptions around EVs relate to the realities of car usage. 81% of drivers surveyed by the RAC in 2023 noted that they wouldn’t worry about making local journeys in an electric vehicle but would be concerned for longer journeys. In reality, most day-to-day journeys and commutes are less than 10 miles and so do not require a large battery range. That said, electric battery range is growing, and the public charging network – while not perfect – is improving; instances of long queues for charge points are rare.

There is also notable confusion over the environmental credentials of electric vehicles, including around particulate matter and lifetime emissions from the production process.

Our latest research for the Report on Motoring found that only 44% of drivers agreed with the statement that ‘Over the course of their lifetime, electric vehicles are better for the environment than petrol and diesel cars’, with a significant 28% disagreeing. That a significant portion of drivers are unconvinced by the environmental credentials of electric vehicles suggests a lack of public confidence in the Government’s EV policies and a need for greater and clearer communication about the switch.

6. What are the overall environmental benefits that would result from achieving the 2030 and 2035 targets?

The RAC supports the Government’s plans to decarbonise road transport to reach net zero and reduce air pollution. As a motoring organisation, managing our impact on the environment is imperative, as is recognising the role we can play in encouraging drivers to make the switch to electric vehicles with confidence. We have identified opportunities to reduce emissions across our company car fleet as part of our 2022 Decarbonisation Plan and a key focus for us has been supporting the transition to EVs for our colleagues and customers. The RAC was also the first major roadside assistance company in the UK to begin using an electric patrol vehicle to attend breakdowns in January 2022.

7. What are the likely costs that will be faced by consumers as a result of the Government’s phase-out dates for non-zero emissions vehicles? Are there policies or initiatives that the Government could use to specifically target barriers arising from unpredictable costs to the consumer, for example significant fluctuations in the cost of electricity, changes to road taxes, or the introduction of low emission zones?

The higher upfront cost of electric vehicles is currently a barrier to mass-market adoption however should lessen as more EVs reach the market, a greater variety of models become available, and cars reach the second-hand market. The Government should accelerate this process by reintroducing a modified plug-in-car grant to stimulate the affordable market more quickly.

Moving forward, it’s important that all drivers can benefit from the switch to electric, including their lower running costs. Those without access to at-home EV charging are unable to access more competitive charging tariffs and are more vulnerable to energy shocks and the lack of transparency and consistency across the public charging network. As previously mentioned, the recent Public Charge Point Regulations will go some way to address this, and we’d encourage the Government to go further by addressing the VAT discrepancy between home and public charging and mandating how charging costs are displayed to encourage competitiveness and shield against unpredictable costs. As the RAC/FairCharge charter shows, we believe it is important that prices for charging are nationally consistent and that prominent digital signage provides transparent and comparable information about costs.

The Government must also follow through with its commitment to decouple the wholesale price of electricity from gas. The current system allows electricity, and by extension EV charging prices to be shaped by volatile energy shocks as gas-fired power stations are the last source of supply used to meet demand. If prices were decoupled, cheaper renewable electricity sources will over time determine energy prices, meaning greater energy security and more stable prices for consumers.

Lastly, we understand that the revenue from fuel duty will need to be replaced by a new system of road tax. Our research suggests that drivers are broadly supportive of the principle that ‘the more you drive, the more tax you should pay’, with over a third agreeing that a ‘pay per mile’ system would be fairer than the current regime.

However, almost three-quarters of drivers are concerned the Government could use such a system to increase the amount they are taxed. It’s vital that whatever tax regime put in place is simple, transparent and fair to all drivers of all vehicles, and that it replaces, rather than runs alongside, the existing taxation system. We would strongly encourage the Government to ringfence a sizeable proportion of revenues raised from any new scheme to reinvest into the road and transport network.

Government messaging in this area will also be important – as has been seen in recent discussions around London’s ULEZ, any move to a fair and transparent, road user charging system must be clearly communicated and must not be seen as a ‘war on motorists.’ Communications should emphasise the fact any new system is replacing revenue and in turn costs incurred by drivers through fuel duty.

8. What are the main routes for acquiring an EV? Which aspects of these routes are working well, and which aspects could be improved?

Other organisations will be better placed to respond to this question, but we would note that the majority of drivers acquire their vehicles on the second-hand market. While growing, the number of used EVs for sale is still relatively small which is likely to mean sale prices remain relatively high. By encouraging the sale of more new EVs, in time many more of these will find their way onto the used car market and, we would hope, prices will fall correspondingly.

New EVs can be acquired in the same way as other petrol or diesel cars, although there are some novel subscription-based services that allow drivers to switch to EVs without such a significant initial upfront cost.

9. What are the main consumer barriers to acquiring an EV, either through purchasing, leasing, or other routes?

As explained above, we believe it is the cost to acquire an EV coupled with concerns – whether perceived or real – about charging up on longer journeys that are barriers to more people acquiring EVs. Our latest Report on Motoring asked would-be EV drivers for the reasons they are not likely to opt for an EV next time they changed their vehicles. This found:

• 61% believe there are not enough public charge points.
• 53% worry about public charge point reliability.
• 51% are concerned the cost of electricity has risen.
• 50% are concerned they wouldn’t be able to make long trips as easily.
• 50% are waiting for battery technology to improve so they can go further on a single charge.
• 36% say EVs cost more.

The report also found that 69% of drivers would only acquire an electric vehicle if they had a private driveway or garage to charge at home. This is coupled with the fact that 37% perceive it is difficult to charge an electric vehicle on public charging networks, an increase from 29% in 2022.

Clearly, there remains a significant lack of consumer confidence when it comes to driving an EV without home charging – a perception informed by both practical issues around the charging experience and exacerbated by an abundance of negative misconceptions in the public domain.

10. How is the Government helping to ensure that EVs are affordable and accessible for consumers, and are these approaches fit for purpose?

As above, the Plug in Car Grant was initially successful in stimulating the early EV market and its impact has been impressive. But its removal has hindered further advancement – to accelerate the EV transition and make EVs accessible to everyone, upfront prices need to fall rapidly. The Government should re-introduce a modified version of the grant for vehicles with a list price of less than £30,000 to stimulate the affordable market, which in turn will feed into the second-hand market where most drivers buy their cars.

11. Do you think the range of EVs on offer in the UK is sufficient to meet market needs? Which segments are under-served and why? Why is the UK market not seeing low cost EVs, particularly in comparison to China?

We know from RAC research that the cost-of-living crisis is causing drivers to hold on to their cars for longer. A lack of more affordable electric vehicles in the second-hand market therefore remains a large consumer barrier to access – and reinforces why consumer incentives, alongside the 2030 and 2035 deadlines, are so important to accelerate mass market adoption of electric cars.              

15. What barriers are there to achieving a sufficient supply of second-hand EVs, mindful that second-hand vehicles make up a high proportion of all vehicles purchased?

Second-hand buyers of EVs will want confidence in their purchases. Given how important batteries are to EVs, it is vital that drivers can be reassured of their health before making a purchase. We would be supportive of any work by the Government to explore the feasibility of battery health certification schemes or other battery health guarantees, alongside increasing education and understanding of the quality and longevity of EV batteries.

16. What is the value and role of alternative transport models such as car clubs and micro mobility vehicles in the Government achieving the 2030 phase out date, and how should the Government consider their roles and opportunities for use in transport decarbonisation?

While alternative transport models and car clubs can play an important role in reducing overall road transport emissions, it is worth noting that overall dependency on the private car remains at very high levels with more than eight-in-10 saying they would struggle to adjust their lifestyle to being without a car.

17. Are consumers charged higher rates of insurance for an EV when compared to an internal combustion engine (ICE) vehicle, and if so, are these higher rates justified? Can the Government do anything to mitigate this?

More data is needed to highlight the difference between insurance premiums for drivers of EVs compared to ICE vehicles, as currently the proportion of drivers insured to drive EVs is currently extremely small.

18. What are the main challenges that UK consumers face in their use of EVs?

The main challenges identified by RAC members in the 2023 driver survey related to charging an electric vehicle on public networks. Over one third of EV drivers (36%) felt public chargers were not easy to use, while a large portion (79%) noted that chargers were not always working when needed. Others expressed concerns around the usability of the networks and the need to use different apps and websites for different charge point providers. Drivers also raised the lack of truly fast charge points available for long journeys. This was echoed by recent RAC research finding that under a quarter of motorway services in England currently have the target of six high-powered chargers – and only 5% of all rapid and ultra-rapid chargers are located at motorway service areas. However, it is important to note that enormous progress is being made when it comes to installing new EV chargers, a trend that must continue as move closer to 2030.

19. What are the main benefits that UK consumers could realise from using an EV?

EV drivers benefit most notably from lifetime cost-savings, including lower running costs and lower servicing and maintenance costs due to fewer mechanical parts at risk of breaking down and in need of replacement. Those with at-home charging also benefit from the convenience of being able to fully charge their vehicles relatively cheaply at their own home, often overnight, and with the potential of vehicle-to-grid technology enabling energy stored in car batteries to be sold back to the grid and/or used to power appliances within the home.

EVs also offer a smoother and quieter driving experience and have the societal health and environmental benefit of reducing air pollution due to lack of tailpipe emissions. This also means EV drivers are exempt from London’s ULEZ and other clean air zones across the country.

20. How prepared are car dealerships, service networks, repairs and maintenance organisations, breakdown services and aftermarket suppliers to meet the growing EV uptake?

The RAC is at the leading edge of providing breakdown services with EV drivers in mind. The RAC is the first breakdown assistance company to have emergency chargers fitted to our vans - our EV Boost unit is a lightweight, compact, van-mounted charger, providing out-of-charge or severely depleted electric cars enough power to travel short distances home or to a nearby charge point.

Our vans are also equipped with an ‘All-Wheels-Up’ rapid recovery system. As it’s not advisable to tow an EV on two wheels, we have adapted the rapid deployment towing systems fitted to RAC vans to be able to tow with four wheels off the road. This means an orange RAC van can rescue a broken-down EV – or for that matter cars with double punctures or transmission problems – without having to call out a separate recovery truck.

21. How does the charging infrastructure for EVs need to develop to meet the 2030 target? Does the UK need to adopt a single charging standard (e.g., the Combined Charging System (CCS)) or is there room in the market for multiple charger types?

Having a reliable, easy-to-use and navigate charging network is vital for consumer confidence to switch to electric. Our findings that less than a quarter of motorway services in England currently have hit the target of six high-powered chargers is a real concern, demonstrating that the Government is not on track to meet its own targets. 60% of drivers who will not choose an electric vehicle for their next car believe there isn’t enough public charge points. We would encourage the Government to set annual infrastructure targets alongside the ZEV mandate to ensure the network keeps pace with current demand and increase the overall consumer demand for electric vehicles. 

22. The Government recently published the draft legislation of “Public Charge Point Regulations 2023”. What assessment have you made of the draft legislation text, and what contribution will it make in ensuring the charging experience is standardized and reliable for consumers?

The RAC welcomes the new Public Charge Point Regulations as an important first step to improve the experience of charging on public networks. It’s welcome that the Government has acknowledged challenges around price transparency, reliability and usability, including simplifying the charging process through a single app. However, we would like to see charge point operators go further, as laid out in the RAC/FairCharge public charging charter.

23. What assessment do you make of the requirements set out in the draft legislation of “Public Charge Point Regulations 2023” for charge point operators to make data free and publicly available, and how may this improve the EV charging experience for consumers?

We would encourage Government and operators of rapid and ultra-rapid charging hubs to go further and install prominent digital signage – similar to fuel price ‘totems’ – which drivers are already familiar with, as is happening in other European countries. Not only will this increase public understanding and transparency but showcase to non-EV drivers the existing public charging infrastructure in place, encouraging more drivers to make the switch.

This, alongside existing online databases of charge points and accompanying mobile apps like Zap-Map, would work to make price comparisons easier, as well as highlight which chargers are working, and which are out-of-order.

24. In terms of charging infrastructure, are there unique barriers facing consumers in areas of low affluence and/or multi-occupancy buildings, such as shared housing or high-rise flats? Do you consider public EV charging points to be accessible and equitable compared to home-charging points? What can be done to improve accessibility and equitability?

Lack of home charging remains a significant consumer barrier with 69% drivers stating they would only acquire an electric vehicle if they had a private driveway or garage to charge at home. 33% of RAC members surveyed in 2023 stated they would not be able to access home charging.

Public charging is by nature more expensive than charging at home; the price paid covers installation costs, running costs, connectivity costs and the profit margin of charge point operators. All EV drivers without home charging are unlikely to have access to off-peak tariffs and are impacted by the VAT discrepancy between on street and off-street charging. This predominantly impacts those in terraced housing, shared housing, and high-rise flats. An immediate step to improve accessibility and equitability would be to reduce the VAT on public charging to 5%, in line with the rate charged when charging at home.

The Government should also review the unique challenges facing those in the private rental market or leasehold owners in terms of home charger installation. These drivers face greater difficulty in securing permission to install EV charging infrastructure and the Government should explore possibilities within planning law to allow for the right to install EV chargers in the home.

26. What options are there for consumers for end-of-life management of batteries and EVs, and what impact does this have on consumer attitudes towards buying an EV?

The actual disposal/end-of-life management of an EV’s main battery is unlikely to be something consumers will need to concern themselves about – ultimately it will be insurers and garages that take responsibility for them at the point when they stop working altogether.

But most importantly, unlike 12 volt ‘starter’ batteries in vehicles that effectively reach the end of their live and need replacing (for example, at a garage), the main battery packs in EVs have much, much longer lifespans. In fact, there are examples of people driving older EVs for several hundred thousand miles with the health of the battery only being negligibly degraded compared to when the vehicle was new. This means that the vehicle still functions properly, but just has a slightly lower range than it had when it was brand new. Even at the end of a vehicle’s life, main batteries are increasingly being repurposed for energy storage where they can be used for many more years.

While it will be important for consumers buying used EVs to have confidence that the main battery is healthy – indeed a vehicle’s future value is likely to be decided based on its battery’s range – we expect there to still be a market for EVs that have to be charged more regularly than when they were new. For instance, if a driver covers only a small number of miles a week, then a used EV with a lesser range than it had when it was new would not be a problem.

30. What is the role of distribution network operators in ensuring EV infrastructure can be rolled out sufficiently to meet 2030 target?

It is vital that issues related to electricity grid connections involving distribution network operators, that hamper the ability for a developer or charge point operator to install new chargers, are addressed as a matter of urgency.

31. What are the requirements, challenges, or opportunities for the development of public charge point delivery across the UK? How will the development of EV charging infrastructure in the UK interact with existing planning regulations?

Other organisations are better placed to answer; however, the planning system should allow for the fast installation of local ultra-rapid charging hubs to support those without home charging. It is also vital that issues related to electricity grid connections that hamper the ability for a developer or charge point operator to install new chargers are addressed as a matter of urgency.

32. What are the issues facing rural residents, urban residents, and sub-urban residents and how do they differ?

Rural residents are more likely to have access to off-street parking and therefore home charging. Urban residents are much less likely to have access to at-home charging due to the higher proportion of flats, high rise developments and terraced housing with limited private parking. All those living in rented accommodation or own leasehold property may also face difficulties with seeking permission for home charger installation. We believe there is clear need for more rapid and ultra-rapid charging hubs, giving drivers wherever they live the chance to charge up quickly and with the minimum of fuss.

34. What are the successful approaches to the rollout and uptake of EVs in other countries, and what can the UK learn from these cases?

Norway is often cited as a country where electric vehicle take-up is far ahead than the rest of the world. Here, the Government has implemented the following policies[4]:

-          No purchase/import taxes (1990-)

-          Exemption from 25% VAT on purchase (2001-)

-          No annual road tax (1996-)

-          No charges on toll roads or ferries (1997- 2017).

-          Maximum 50% of the total amount on ferry fares for electric vehicles (2018-)

-          Maximum 50% of the total amount on toll roads (2019)

-          Free municipal parking (1999- 2017)

-          Parking fee for EVs was introduced locally with an upper limit of a maximum 50% of the full price (2018-)

-          Access to bus lanes (2005-).

-          New rules allow local authorities to limit the access to only include EVs that carry one or more passengers (2016)

-          50 % reduced company car tax (2000-2018).

-          Company car tax reduction reduced to 40% (2018-)

-          Exemption from 25% VAT on leasing (2015)

-          Fiscal compensation for the scrapping of fossil vans when converting to a zero-emission van (2018)

-          Allowing holders of driver licence class B to drive electric vans class C1 (light lorries) up to 4250 kg (2019)

Of these policies, the UK Government has implemented a zero annual road tax rate and reduced company car tax rates. The introduction of green number plates in 2020 in theory gives local authorities scope to offer incentives such as reduced parking rates, access to enforced bus lanes and other local ‘perks.’