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Consumer confidence in electric cars has dropped significantly from two years ago, with only 9% of buyers, in a recent survey, saying their next car would be electric.

Fleet sales continue to drive the majority of electric vehicle (EV) sales, which achieved a 20% market share in August.

In the first half of 2023, less than a quarter of new EVs were sold to private buyers.

A joint study by Electrifying.com and The AA found that just 16% of people agree that the Government is right to pursue the 2030 deadline for banning the sale of new petrol cars.

Surging prices for new EVs is hampering sales. The survey found that 87% of buyers believe they are “too expensive”.

Edmund King OBE, AA president, said: “There is no doubt that the higher initial cost of EVs and charging difficulties, particularly for those without off-street parking, are putting off a significant proportion of drivers from being able to make the switch.

“Financial incentives are needed to help ‘level up’ the affordability for those drivers not able to benefit from salary sacrifice or company car discounts. Once drivers are able to go electric they will enjoy the financial, driving and environmental benefits and will not look back.”

Auto Trader data shows new EVs are, on average, 33% more expensive than traditionally fuelled vehicles.

It also shows a 23% contraction in second-hand electric prices over the past 12 months, bringing greener options within reach of more drivers. According to Auto Trader data, more than a quarter of all used EVs were priced under £20,000 in August – up from 7% a year earlier. EVs between three and five years old have seen even bigger price drops of 40%, making some EV models such as the Nissan Leaf cheaper than petrol or diesel equivalents for the first time.

As a result of the softening in prices, which has been fuelled by a significant growth in supply as brand-new EVs bought on finance or leasing contracts three-four years ago re-enter the market, demand for second-hand EVs on Auto Trader has increased significantly.

While the oversupply of EVs has been effective in driving down used prices and encouraging consumers to consider the switch, uptake is still limited. Auto Trader is calling for the Government to make EVs more affordable by using incentives in the tax system rather than relying on unsustainable market dynamics.

Ian Plummer, commercial director at Auto Trader, said: “There is still much more work to be done to achieve a mass transition to electric vehicles before the 2030 ban on new petrol and diesel models and ensure no driver is left behind. Support from the tax system to put the used EV market on a more robust footing is vital for the sustainability of the entire EV market and our chances of successfully transitioning to EVs by 2030.

“Consumers are still worried about affordability and charging, which is why we need a clear statement of intent from the Government. Penalising drivers who have to charge in public with higher VAT is simply unfair: we need to end this charging injustice.”

Research from Turo found that 43% of Brits say they won’t consider switching to an EV when they purchase their next vehicle. Among older generations, this figure rose to 53% among Gen X and Baby Boomers, and dropped to 25% of Gen Z and Millennials.  By Graham Hill thanks to Fleet News

Gridserve has hit the milestone of having 50 new Electric Super Hubs built or in construction this year.

The company also has “dozens” of additional sites being prepared for production for the facilities, which typically include 350kW high power chargepoints.

The new hubs are spread across England, Scotland and Wales, providing high power charging on some of the UK’s busiest routes, as well as electric retail hubs at popular shopping destinations.

Toddington Harper, CEO of Gridserve, said: “By announcing Gridserve reaching the milestone of our phase one 2023 rollout, we are able to deliver EV drivers further confidence to make the switch to EV knowing they can travel with ease, with zero tailpipe emissions, across the length and breadth of the country.

“It’s clear that the climate crisis is upon us, and it is critical we continue to increase our pace – we are now also immediately commencing our phase 2-rollout, with the target to also deliver hundreds more High Power chargepoints this year.”

Harper said the first phase of the rollout will add more than 400 new 350kW chargepoints to the Gridserve Electric Highway, more than doubling the number of these types of chargepoints currently available.

The high power chargepoints are capable of delivering 100 miles of range in only five minutes, depending on the capabilities of the electric vehicle.

Phase two of the transformation will see hundreds more high power chargepoints added later this year.

Gridserve will also open another Electric Forecourt this year at London Gatwick, te first of its kind at an international airport.

Planning permission is also approved at several other sites including Nevendon, Gateshead, Plymouth, Stevenage and Markam Vale, with more than 30 other sites also under development.

Gridserve is also using innovative technology to minimise issues caused by grid connection lead times. Moto Ferrybridge, for example, features a temporary microgrid that uses batteries and vegetable oil, while Cornwall Services uses a combination of a 100kW grid connection, lithium-ion batteries, solar energy and the latest software developed by GRIDSERVE Technologies to provide High Power Charging. 

Electric Super Hub locations already opened in 2023: 

• Moto Blyth (A1(M))  
• Moto Cherwell Valley (M40)  
• Cornwall Services (A30)  
• Moto Ferrybridge (M62/A1(M))  
• Moto Grantham (A1)  
• Moto Leeming Bar (A1(M))  
• Moto Pease Pottage (M23)  
• Moto Reading (W) (23/12)  
• Solstice Park (A303)  
• Abbey Retail Park St Ives (A14)  
• Dobbies Swindon   
• Moto Washington North A1(M)  
• Moto Washington South A1(M)  
• Roadchef Watford Gap North (M1)  
• Roadchef Watford Gap South (M1) 
• Moto Grantham (A1) – extension
• Moto Scotch Corner (A1) 

Electric Super Hub locations awaiting energisation or in construction (in alphabetical order): 

• Roadchef Annandale Water (A74(M)) 
• Roadchef Bothwell (M74) 
• Moto Cardiff West (M4) 
• Roadchef Chester (M56) 
• Moto Chieveley (M4) 
• Roadchef Clacket Lane East (M25) 
• Roadchef Clacket Lane West (M25) 
• Roadchef Durham (A1(M)) 
• Dobbies Edinburgh 
• Moto Exeter (M5) – extension
• Moto Frankley Southbound (M5) 
• GRIDSERVE Electric Forecourt® London Gatwick Airport 
• Dobbies Gloucester  
• Moto Hilton Park North (M6) 
• Roadchef Killington Lake (M6) 
• Kingsway Retail Park, Derby 
• Moto Kinross (M90) 
• Moto Lancaster Northbound (M6) 
• Moto Lancaster Southbound (M6) 
• Dobbies Leicester 
• Dobbies Liverpool 
• Moto Medway East (M2) 
• Moto Medway West (M2) 
• Monkswood Retail Park, Stevenage 
• Moorlands Centre, Lincoln  
• Roadchef Northampton North (M1) 
• Priory Fields Retail Park, Taunton 
• Roadchef Sandbach North (M6) 
• Roadchef Sandbach South (M6) 
• The Slough Retail Park, Slough 
• Dobbies Stockton 
• Roadchef Strensham North (M5) 
• Moto Tamworth (M42) 
• Teals Farm Shop (A303) 

By Graham Hill thanks to Fleet News

50% of car drivers broke the speed limit on 30mph roads in 2022, according to newly-released figures from the Department for Transport (DfT).

The figures are based on speed data from DfT automatic traffic counters, chosen to represent ‘free flow’ traffic speeds by excluding data from locations where driver behaviour might be affected by factors such as junctions, hills, sharp bends, and speed cameras.

The figures show that 50% of cars exceeded the limit on roads with 30mph limits, compared with 45% on motorways, and 11% on national speed limit single carriageways.

The DfT said that compliance with speed limits in 2022 was slightly higher than in 2021, which it said could be partly due to lower traffic levels in the previous year due to the Covid-19 pandemic. It said the 2022 figures were broadly similar to those seen from 2011 to 2019.

The data also showed that the average car speed under free flow conditions was just below the speed limit on motorways, at 69mph, at the speed limit exactly on 30mph roads, and well under the speed limit on national speed limit single carriageways, at 51mph.

Reacting to the figures, RAC head of policy Simon Williams said: “It’s concerning to see that every year half of drivers exceed the limit on 30mph roads, with more than a fifth (22%) last year driving more than five miles an hour too fast.

“The implications of speeding on these roads are likely to be greater than on faster roads, not least as they’re generally in areas with more pedestrians and cyclists.

“One possible explanation for why speed limit compliance is so much worse compared to other roads is that drivers may be used to looking for speed limit signs, which are much less prevalent on 30mph roads as generally speaking the presence of streetlights indicates the limit is 30mph. While drivers should know this, perhaps there is a case for the use of more ‘repeater’ signs in 30mph areas so there is no doubt.”

Giving his reaction, Nextbase head of road safety Bryn Brooker said: “It’s good news that speed limit compliance ticked up slightly in 2022, but still disappointing just how many motorists aren’t obeying the rules. There seems to be a bit of a herd issue here – since about half of motorists are speeding in 30mph zones, people match their speed to those around them.

“Speed limits exist for a reason. The difference between 30mph and 40mph might not seem huge, but if something goes wrong that speed makes a huge difference: a pedestrian hit at 30mph has an 80% chance of surviving, a pedestrian hit at 40mph has just a 10% chance of surviving.

“Given that most of the speeding was within this zone, this is an area British motorists really need to improve on.” By Graham Hill Thanks To Business Car.

In one of my soon to be released podcasts and in an interview on Men’s Radio Station I talked about this drawing a similarity between the charger network and an old Morecombe and Wise sketch with Andre Previn the famous conductor. In the sketch the orchestra built up to the piano solo that was to be performed by Eric. Having been given the nod by Andre he played something akin to chopstics.

Following this Andre walked over to Eric and said, ‘You’re playing all the wrong notes.’ Eric replied, ‘I’m playing all the right notes but not necessarily in the right order!’ And that’s what we have with the charger network. We have plenty of chargers, they’re just not in the right places! Anyway, I thought I would share! Onto the actual article.

Location data should be used by local authorities to ensure that electric vehicle chargepoints are fitted in the best places, a new report says.

The Government’s Geospatial Commission says the transition to EVs will be enabled by a dependable, well-located public charging network that councils are ideally placed to help deliver.

Its Charging Ahead report points out location of chargepoints is as important as absolute number, with local authorities well placed to identify local needs and play a fundamental role in facilitating private sector investment.

They must make informed decisions about how many, which types and where chragepoints are installed, based on demand and site suitablility.

Viscount Camrose, minister, department for science, innovation and technology, said: “The transition to EVs is central to the government’s plan to decarbonise the transport sector, keep the UK at the forefront of clean transport and tackle pollution, all while seizing the potential for growth and job creation in the UK’s growing EV industry.

“Local authorities and the wider sector should continue to embrace new location data and analysis to accelerate the targeted rollout of chargepoints so that drivers can find and access reliable chargepoints wherever they live.”

The report explores the breadth of location data and applications available to support local authority decisions about were to install new chargepoints and identifies five opportunities to better use existing location data, as well as new sources of information to:

1. Understand the location and availability of existing chargepoints by making chargepoint operator data standardised and consistent
2. Understand consumer charging behaviour and travel patterns by using population movement data
3. Identify the location of EVs by using commercially-held data about leased vehicles
4. Identify existing electricity network capacity through better use of distribution network operator data
5. Identify areas without off-street parking by using proxy data.

By Graham Hill thanks to Fleet News

Carmakers face additional costs of more than £600m under new Zero Emission Vehicles (ZEV) mandate rules, for selling non-electric cars and vans.

The ZEV Mandate will require vehicle makers to ensure at least 22% of their new car sales and 10% of new vans are zero emissions in 2024. This will then rise incrementally each year to 80% for cars and 70% for vans in 2030, and 100% for both by 2035.

The Department for Transport (DfT) plans to put the ZEV mandate rules to a vote in Parliament, according to a report in The i newspaper.

Vehicle makers that fail to achieve the ZEV mandate sales targets will be subject to fines, with a system of proposed flexibilities and credits to support those that sell a low volume of electric vehicles (EVs).

Research from New Automotive shows that 32 car manufacturers would collectively be 44,000 credits short of meeting these targets, if the ZEV mandate had been in force over the last 12 months.

If a company misses the target, it will be made to pay the Government £15,000 for every vehicle that doesn’t comply. This totals £660m in borrowing costs, according to New Automotive.

Fears have already been raised that the proposals could create another vehicle supply crisis, if manufacturers decide to cap the number of non-electric vehicles they sell.

A number of leading fleet operators are supportive of the targets, however.

The Government has been consulting on the ZEV mandate, since it published a proposal of how the scheme could work, in April.

The proposals fail to define which vehicles will be permitted for sale between 2030 and 2035, which the Government has stated must have ‘significant zero emission capability’.

The consultation also states that only true “zero carbon” technologies will be permitted post 2035, which could rule out synthetic e-fuels as an alternative to electrification or hydrogen.

Mike Hawes, SMMT Chief Executive, said: “We want regulation that gives consumers choice and affordability, and enables manufacturers to transition sustainably and competitively.

“While the proposals rightly reflect the sector’s diversity, late publication and lack of regulatory certainty make product planning near impossible, and the continued lack of clarity as to what technologies will be permitted beyond 2030 undermines attempts to secure investment.”

Which manufacturers face the biggest penalties?

In the first half of 2023, 16% of all new cars sold were electric. Only 11 car makers exceeded the proposed 22% target for EV sales, however, and a third of all the EVs sold in the UK between January and July came from just three brands.

Manufacturers such as BYD, GWM ORA, MG, Polestar, Smart and Tesla are significantly ahead of the target, due to their model ranges being mainly or entirely electric.

BMW, Cupra, Jaguar, Porsche and Volvo are also close-to or already achieving the target, based on current registration figures.

Brands with the highest proportion of EV sales in H1 2023:

Manufacturer	EV %
BYD	100%
Cupra	26%
Genesis	76%
Jaguar	28%
MG	38%
Polestar	100%
Porsche	27%
Tesla	100%

Brands with no EVs include Alfa Romeo, Dacia and Seat, but they are all part of larger automotive groups and may benefit from credit sharing arrangements.

Japanese brands Honda, Mazda, and Toyota Lexus face a particular challenge, as the bulk of their sales come from internal combustion engine (ICE) models.

Ford, equally, has a strong ICE mix, with EVs making up just 2% of its registrations in the first half of 2023.

Tim Slatter, Ford Motor Company chair, said Ford supports the ZEV mandate but has raised concerns that carmakers will also face increased trade tariffs from next year, as a result of changes to the UK-EU Trade and Cooperation Agreement (TCA).

He added: “Introducing EV tariffs at the same time will undermine the mandate and slow the growing EV trend.

“Today the industry does not have sufficient locally-sourced batteries and components to meet demand.  Tightening trade rules at this point risks undermining the switch to EVs with tariffs and adding pointless cost to customers wanting to go green. Manufacturers who have invested most early in the transition will be hardest hit by tariffs as combustion engine vehicles will continue to move tariff-free.”

Ford is calling for current trade requirements to be extended to 2027, to allow time for the battery supply chain to develop in UK-EU and to meet EV demand.

Brands with the lowest proporton of EV sales in H1 2023:

Manufacturer	EV %
Alfa Romeo	0%
Dacia	0%
Honda	1%
Jeep	1%
Land Rover	0%
Lexus	7%
Mazda	2%
Seat	0%
Toyota	1%

Stellantis brands Citroen, Peugeot and Vauxhall all have multiple EVs in their respective line ups, yet the group’s EV registrations currently make up only 15% of its total sales.

A Stellantis spokesperson told Fleet News: “We welcome the flexibilities for banking, borrowing, trading and pooling and we welcome closed pooling being permitted.”

They added: “No decision has been made on the specifics of our strategy to date.”

Stellantis expects to see growth in the EV market for all its brands.  By next year Vauxhall will offer an electric variant of every car it sells, while Jeep is about to start selling its first EV in the UK.

Toyota Lexus declined to comment on the ZEV mandate, but in a recent interview with Fleet News, Neil Broad, general manager of One Toyota Fleet Services, acknowledged that the brand – like many others – faces a challenge in the short-term.

Fleet buyers drive the majority of EV sales

Deeper analysis of UK new car registration figures highlight the importance of the fleet sector in the rollout of new EVs.

In the first half of 2023, 60% of EVs were sold into the true fleet market while less than a quarter went to private buyers.

For premium brands, the fleet sector is an even bigger driver of EV sales and accounts for around three in every four registrations. By Graham Hill Thanks To Fleet News

The pump price of petrol last month saw one of the biggest increases in the past 23 years, figures from RAC Fuel Watch show.

The organisation found the average price of a litre of unleaded was 152.25p at the end of August, up from 145.57p at the beginning of the month. Diesel went up from 146.36ppl to 154.37ppl.

For petrol, the monthly rise of 6.68ppl exceeded only by March (11.61ppl), May (11.15ppl) and June 2022 (16.59ppl) after Russia’s invasion of Ukraine, and October 2021 (7.43ppl).

Diesel’s increase was also surpassed only by March (22.06ppl), June (15.62ppl) and October (10.14ppl) last year, as well as by October 2021.

Simon Williams, fuel spokesman at RAC, said: “August was a big shock to drivers as they had grown used to seeing far lower prices than last summer’s record highs.

“Seeing £4 or more go on to the cost of a tank in the space of just a few weeks from a pump price rise of 6-7p a litre is galling, particularly for those who drive lots of miles or run and older, less fuel-efficient car.

“While the increase is clearly bad news for drivers, it could have been far worse had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up.”

Williams said wholesale costs for both petrol and diesel started to rise in late July on the back of oil hitting $85, but retailers have clearly been influenced by the Competition and Markets Authority’s investigation as margins have fallen to become closer to longer-term averages.

He added: “All we can hope is that this move by many big retailers back to fairer forecourt pricing remains when wholesale costs go down again. Only time will tell.”

Regional pump prices

Unleaded – pence per litre	01/08/2023	31/08/2023	Change	End of month variance to UK avg
UK average	145.57	152.25	6.68
East	146.38	152.72	6.34	0.47
East Midlands	145.28	152.01	6.73	-0.24
London	146.81	153.09	6.28	0.84
North East	144.25	150.76	6.51	-1.49
North West	144.38	150.95	6.57	-1.3
Northern Ireland	141.33	149.51	8.18	-2.74
Scotland	145.32	152.22	6.9	-0.03
South East	147.15	153.74	6.59	1.49
South West	146.56	152.91	6.35	0.66
Wales	144.69	151.90	7.21	-0.35
West Midlands	145.40	152.41	7.01	0.16
Yorkshire and The Humber	144.77	151.40	6.63	-0.85

By Graham Hill Thanks To Fleet News

SP Energy Networks and ev.energy saved 100kW of energy after pausing electric vehicle charging for 112 drivers for one hour as part of a “turn down” event.

The distribution operator said the pause for one hour across homes in the North, Mid Wales, Merseyside, Cheshire and North Shropshire was enough to offset the energy use of 100 homes.

Pausing EV chargers at specific times of heavy energy load can help free up capacity on the grid. These pauses can happen without negatively impacting participants’ charging capacities. The ev.energy customers could set their pre-set ready by time to make sure they still had the required range needed at the time they needed it.

Controlling demand like this is becoming a common tool for grid operators to optimise capacity, reducing the need for infrastructure upgrades while accommodating the growing demand from EV chargers, heat pumps and renewable generation.

Flexibility provides an agile and smart means of balancing the network alongside customer demand.

This turn down event is the first of many, following a contract signed with SP Energy Networks last year to provide 22MW of flexibility services from ev.energy’s virtual power plant.

Ev.energy now will begin scaling up its flexible energy service throughout Central and Southern Scotland, North and Mid Wales, Merseyside, Cheshire, and North Shropshire.

Since its first commercial dispatch instructions from UK Power Networks in December 2021 and National Grid Electricity Distribution in November 2022, ev.energy has facilitated over 2,200 similar turn down event in collaboration with energy distributors. Ev.energy’s users also supported National Grid ESO’s Demand Flexibility Service in winter 2022/23.

 

EV drivers signed up to Ev.energy can earn up to £30 in cash vouchers per year by enabling smart charging and participating in grid services.

William Goldsmith, head of grid services at ev.energy, said: “EVs are well suited to provide energy flexibility services and we are delighted to begin scaling our partnership with SP Energy Networks to support the smart management of their network.

“A typical electric vehicle is plugged-in for 14 hours at a time, but only needs 2-3 hours of charging. This means that with clever software and a simple customer proposition, we can automatically schedule groups of EVs to charge at the cheapest, greenest times for that part of the network.”  By Graham Hill thanks to Fleet News

 Graham Hill Note: You will read in the report below that large numbers of drivers are reporting ‘broken’ chargers but it would seem that not all ‘broken’ chargers are actually broken. It would seem that many reports of chargers that are broken are actually issues with paying for the charge. There are around 40 different chargers available with most having their own payment method.

Whilst the law has changed forcing the charger manufacturers to take contactless debit and credit cards very few current chargers are able to accept them as the law wasn’t applied retrospectively. The charger providers also encourage their own payment method by providing lower rates if you use their app to pay.

Unfortunately, as many have found, it isn’t the charger that’s broken it’s the inability to pay. This is something that is being worked on and will improve in time. There is what is known as an RFID card (Radio Frequency Identity Card) which goes a step towards universal payment but whilst you can use the card on a large number of chargers you have to set up the app or website for each network.

The answer would be to set up an app for use across all networks with central payment and on-charger contactless payments but that would need the government to get involved. Unfortunately, they are being guided by the wrong people.

On to the piece:

Half of UK electric vehicle (EV) drivers encounter a broken public charge point when they arrive hoping to charge 25% of the time, new research suggests.

The YouGov survey, commissioned by Ctek, found that charge points were faulty for at least one-in-four charging attempts on the public network.

EV drivers who encounter faulty charge points most often do so at destinations such as shopping centres and leisure venues (30%), in public car parks (21%), on motorways and major highways (16%) and near their home (12%).

Furthermore, the survey suggested that more than half (52%) of UK EV drivers have to wait to use a public charger, with delays reported for one in every four visits. Some 8% said that they never have to queue.

Queues were most often found at destinations such as shopping centres and leisure venues (33%), in public car parks (19%), on motorways and major highways (17%) and near their home (10%).

The survey also found UK EV drivers want simpler ways to pay for public charging. Almost one in four (23%) have five or more EV charging apps on their phone and one in three (34%) have three or more RFID tags or cards.

Instead, EV drivers said their top three ways to pay would be: one app for all charge points, known as e-roaming (the preferred choice for 19%); ‘plug & charge’ (19%), the ISO15118 standard where the car and the charge point communicate automatically with payment taken from the account linked to the EV’s owner; and tapping a bank card (17%).

When asked where they would like to charge, 62% of UK EV drivers said at home. Three out of 10 EV drivers (30%) said they would like to charge on the highway, 21% at a destination and 20% said at work (up from 11% in 2022).

Cecilia Routledge, CTEK’s global director for energy and facilities, said: “The UK charging sector and national and local government need to work harder on expanding and maintaining the charging infrastructure to reduce the frequency of broken chargers and queueing.

“If EV ownership expands in line with our survey results there must be many more additional opportunities to charge at destinations, workplaces, car parks and on highways. And they must work and the charging be easier to pay for.”

New charge point regulations

The Government has published new regulations for public charge points, including a reliability standard of 99% for rapid chargers.

The new rules, outlined in the Public Charge Point Regulations 2023, aim to improve the charging experience for EV drivers.

Better reliability, clearer pricing, easier payments and open data, which could transform the mapping and ease of planning journeys, are all prioritised.

All chargers over 8kW (not slow chargers/lamppost chargers) will have to have contactless payments within the next year.

In terms of data, the Government says that all public chargers will have to provide real-time information on their status for free, which will benefit mapping tools.

Charge point operators (CPOs) will also be required to be transparent about their pricing, have roaming deals with third parties within two years and ensure that all chargers have 24/7 helplines.

Crucial to building public confidence will be the reliability of the charging network, with the new rules mandating a 99% reliability rate over a CPO’s network.

Drivers enthusiastic to make the switch

The YouGov survey, nevertheless, suggests drivers are keen to switch to electrified vehicles in big numbers, with almost one in four people (24%) saying their next vehicle will be a fully electric or a plug-in hybrid electric vehicle (PHEV).

The latest sales figures, from the Society of Motor Manufacturers and Traders (SMMT), showed a similar proportion (25.1%) of the new car market in June, was either a PHEV or a battery electric vehicle (BEV).

However, it is significantly less than almost two-thirds (60%) of drivers who told Lex Autolease that they will move away from petrol and diesel vehicles and opt for battery technology when choosing their next car, with two-fifths (40%) set to choose a full EV.

Ctek’s research suggests that more than seven out of ten (71%) current EV owners intend to buy a BEV or PHEV again, while 50% of current petrol and diesel drivers plan to stick with an internal combustion engine (ICE) car.

Factors that would make non-EV owners more likely to buy an EV include more highway chargers (cited by 54%), destination charging (49%), public charging in their neighbourhood (45%) and a charging unit at home (43%). Half (50%) of working non-EV drivers said workplace charging options would make them more likely to purchase an EV.

When asked to choose some factors that would encourage future EV purchases, lower car prices were the top choice by current ICE drivers, with more than half (59%) saying a lower purchase price would help.

Routledge said: “Our annual YouGov survey shows a strong demand from both existing EV owners and ICE drivers to buy electric as their next vehicle – both new and used.” By Graham Hill thanks to Fleet News

The introduction of new phased driving licensing system for young and newly qualified drivers is supported by the majority of people, new research suggests.

A survey, conducted on behalf of the road safety charity Brake and insurance company Axa UK, found 63% of respondents were in favour of the change, with just 16% against.

Brake say drivers under the age of 25 are four times more likely to be involved in a fatal crash if they are driving with others – claiming peer pressure leads to young motorists showing off.

New restrictions would see amendments made to the Road Traffic (New Drivers) Act to ban passengers under the age of 25 in the driver’s first year or six months.

The Act already bans drivers if they get six points in their first two years of driving.

It has been backed by Support for Victims of Road Crashes – an advisory to the Department of Transport (DfT) – and National Police Chief’s Council Roads Policing lead Jo Shiner.

Extra restrictions on newly qualified drivers, which would have seen curfews and limits on passengers in the car, were dismissed in January 2022, because there was a recognition that young drivers needed to use cars for employment.

Government statistics show as many as a quarter of new drivers are involved in accidents in their first two years on the road.

The Government met with road safety campaigners in May to discuss the proposals. 

A new report – Driver testing and education –  published today (Friday, July 14) by Brake and Axa UK, challenges the Government to conduct a high-level strategic review of road safety, because safer drivers mean safer roads for all.

The top recommendation from the report is to implement a progressive licensing system that provides safeguards for learner and newly qualified drivers.

A progressive licensing system – which introduces elements such as a minimum learning period and a lower blood alcohol limit, while also reducing the number of similar-aged passengers a newly licensed driver can carry – has proved successful in reducing road deaths and injuries of young drivers in other countries, the charity says.

For example, a similar system in New Zealand led to a 23% reduction in car crash injuries for 15–19-year-olds, and a 12% reduction for 20–24-year-olds. 

There is good evidence that additional hazard perception training is another effective way to improve driver safety, it said.

Ross Moorlock, interim CEO at Brake, said: “This report shows that nearly two-thirds of drivers surveyed said they would support a phased or progressive licensing system, and only one-sixth (16%) would be against it.

“This overwhelming majority demonstrates that there is clear public support and appetite for a system like this, and for ensuring we prioritise the safety of young drivers on our roads.

“We ask the Government to ensure that in another six years we aren’t still asking for a system that we know could help safeguard young and new drivers on our roads.”

The issue was discussed at a recent Fleet News at 10, with proposals to ban drivers under the age of 25 from carrying young passengers as part of a ‘graduated driving licence’ scheme broadly welcomed by fleets.

However, some have suggested that any changes to the licensing regime should avoid penalising those who drive for work.

The report from Brake and Axa also focused on other aspects of system change, lifelong learning and further testing such as clearer speed limit signs on single and dual carriageways, more driver education and awareness around stopping distances, and a further call for a reinvestment in active travel schemes.

Axa Commercial CEO Jon Walker said: “This study raises a number of issues around driver education, testing and licensing that warrant further consideration.

“It’s concerning to see that 71% of respondents were unable to identify the correct distance they should keep from the car in front and 59% chose the incorrect national speed limit on dual carriageways.

“We therefore urge the Government to undertake a high-level strategic review to explore the issues raised in more detail, including the introduction of a graduated driver licensing scheme.”  By Graham Hill thanks to Fleet News

HMRC faces having to refund employers millions of pounds after wrongly refusing tax relief from national insurance payments paid on car allowances, a UK court has ruled.

Two employers – Wilmott Dixon and Laing O’Rouke – have successfully argued that car allowance payments made to its employees were ‘relevant motoring expenditure’ and therefore should qualify for relief from Class 1 National Insurance Contributions (NICs).

Both cases were heard together. Laing O’Rourke was appealing an earlier decision which had ruled in favour of HMRC, while the UK’s tax authority was appealing a previous ruling in favour of Wilmott Dixon being able to claim the relief.

This week, after considering the evidence, two judges in the UK’s Upper Tribunal ruled in favour of the employers, leaving HMRC potentially having to repay Laing O’Rourke £2.2 million in NICs from tax years 2004/05 to 2017/18 and paving the way for many more claims. 

Both cases follow the landmark Total People tax ruling from more than 10 years ago, when HMRC lost a case at the Court of Appeal involving grey fleet mileage claims.

Total People’s long-running legal battle related to an NI refund claim based on the difference between the HMRC 40p per mile (ppm) approved mileage allowance payment (AMAP) rate (now 45p) and the 12ppm paid by the employer plus an additional lump sum paid to the employees for using their private cars on business.

The value of the amount claimed was approximately £146,000 or around £1,000 per employee, which was subsequently paid by HMRC.

In what was the first test case following the Total People ruling, Laing O’Rourke argued in a First Tier Tribunal, two years ago, that its car allowance scheme should also qualify for relief from NICs on payments made to employees.

HMRC argued that relief did not apply, because the payments could not be defined as relevant motoring expenditure. Judge Tracey Bowler agreed, ruling in favour of HMRC.

Hearing Laing O’Rourke’s appeal in the Upper Tribunal, however, the Honourable Mr Justice Michael Green and Judge Jonathan Cannan decided that Judge Bowler had “erred in adopting a narrow definition” of relevant motoring expenditure. As a result, they allowed Laing O’Rourke’s appeal, ruling the company was entitled to repayment of NICs paid in relation to car allowances.

In the case of Willmott Dixon, the judges also dismissed HMRC’s appeal. The company had previously argued that car allowance payments made to its employees were relevant motoring expenditure and should qualify for relief.

HMRC had refused to refund Willmott Dixon for NICs paid from 2004/05 to May 2014 relating to car allowance payments made by the firm.

It argued that the car allowances were earnings and not relevant motoring expenditure, but in what was a landmark ruling for fleets last year, the First Tier Tribunal ruled in favour of Willmott Dixon.

This latest ruling agrees with that original decision and has also now found in favour of Lang O’Rourke, exposing HMRC to further cash allowance claims.

Definition of relevant motoring expenditure

What will be of interest to employers and fleets is that the judges in their ruling said that the definition of relevant motoring expenditure is concerned with the nature of the payment by the employer to the employee, in particular, whether it is in respect of the use of a car.

They say if it is a payment for relevant motoring expenditure, then “one way or another there is relief” for the qualifying amount.

However, they added that the provisions do not focus on how the employee spends the money. Relevant motoring expenditure, they agreed, should be given a wide meaning which includes expected use, potential use and availability for use.

Car allowances at the construction and property firm, Wilmott Dixon were paid to employees based on a grade which was allocated to that employee. The more senior an employee, the higher the grade.

The amount paid did not depend on the number of business miles driven by an employee.

Separate business mileage payments were intended to reimburse an employee for the fuel costs of actual business miles driven.

An employee who was entitled to a car allowance at a certain grade could choose to select a car from a lower grade choice list and be reimbursed the difference in the car allowance for those grades.

HMRC had argued that it should not attract tax relief, because it was calculated by reference to grade, not by reference to actual business use, and some employees who received the allowance did no business miles.

However, the court again disagreed with HMRC. In their ruling, the judges said: “The grade of employee affected the amount of the car allowance which was based on the type of company car that an employee of that seniority would have been entitled to if they had chosen that option.

“Again, the fact that some employees did no business miles cannot affect whether those who did are entitled to the relief.

“In our judgment, the FTT (First Tier tribunal) was correct to conclude that the payments made by Willmott were ‘in respect of the use by the employee of a qualifying vehicle’.

“The payments were made to ensure that the employee had a suitable vehicle available for business use.”

John Messore, managing partner at specialist consultants Innovation Professional Services, who represented Willmott Dixon, told Fleet News: “If it’s a separate payment, i.e. not salary but a car allowance, anyone who has done any miles can claim the difference against that car allowance. It opens the floodgates for every single taxpayer in the UK.”

Messore noted that, while the ruling was good news for employers, many were reluctant to try and claim the cash they were now entitled to back.

Nevertheless, he said he was working with a number of companies who have lodged claims with HMRC and he was confident that, following this ruling, they will similarly succeed.

HMRC has 30 days to appeal the decision to the Court of Appeal. By Graham Hill thanks to Fleet News