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Britain must boost electric vehicles market, says IPPR

Britain must enhance its domestic market for electric vehicles (EVs), or risk missing out on job opportunities, economic growth and exports, according to left-leaning think tank, IPPR.

A report published on Monday showed that Britain now has the fifth most competitive automotive industry in the world, but demand for EVs in the UK has fallen behind the rest of the world despite 30 new branded EVs being scheduled for release by 2014.

Two thirds of the world economy is now covered by low emissions standards across the U.S., EU, China, Australia, Russia, Canada and South Korea, which is something IPPR has said Britain must capitalise on.

The think tank’s report, ‘Leading the charge: Can Britain develop a global advantage in ultra-low emission vehicles?’, said that EVs could reduce motoring costs, particularly for organisations that buy large EV fleets, which is an opportunity the Government has been urged to spearhead.

Government leaders were asked to support low emission vehicles with an “active industrial policy” and the creation of an advanced propulsion centre to encourage innovation, funded by existing grants, fees and R&D tax credit.

IPPR’s report also recommended the Government to give borrowing powers to a British Investment Bank and criticised the Funding for Lending scheme, which it said has failed to support SMEs in the automotive industry.

Will Straw, IPPR associate director, commented: “Britain is now in the elite of global car makers with the fifth most competitive automotive industry in the world, but demand for electric vehicles in the UK has fallen behind most other European countries and the US. Britain is on the starting grid but now it’s time to get moving.

“Industry needs stability and support if it is to invest and make the UK a leading exporter of electric cars and other ultra low emission vehicles.

“We need a political consensus to guarantee funds to the end of the next Parliament and a commitment from all political parties that any underspend will be rolled over until those funds are exhausted.”

IPPR made a final recommendation to provide student incentives to take up engineering courses, adding that the Government should make it easier for highly skilled engineering graduates from outside the EU to stay in the UK.

Furthermore, the think tank report argued that £400m spent annually by the Government on cars should be redirected to low emission vehicles, to make sure all Government procured cars give out less than 95g CO2 per kilometer by 2020.

This was posted in Bdaily's Members' News section by Miranda Dobson .