A new report from the Centre for Economics and Business Research (CEBR) said the petrol and diesel car sales ban would have enormous consequences on the economy. It stated that the car ban, which is set to be introduced in 2030, could cost £400billion, more than five times the value of the benefits from the Government’s valuations.
The data also showed that there is also likely to be a massive loss of tax revenue of £5.8billion per year, on average, in the scenario of a ban in comparison to a no-ban scenario, as fuel duty and VAT dwindle away.
From the perspective of the average household, these additional costs over the period 2022 to 2050 amount to £27,400 or just under £1,000 per household per year from 2022 until 2050.
The report, funded by FairFuelUK, the Alliance of Britsh Drivers (ABD) and the Motorcycle Action Group (MAG), recommended that the Government launched an independent analysis of the costs and benefits.
However, Ben Nelmes, Chief Executive of New AutoMotive, criticised the report, saying its methodology was flawed.
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“Where are the figures of the thousands of new jobs created in the growing EV sector?
“We can see that businesses reliant on fossil fuels and incumbent energy suppliers are resistant to the EV transition because it will disrupt their business and profits.
“This isn’t a good enough reason to create a report to put consumers off making the switch themselves.
“The facts show that switching to an electric vehicle is overwhelmingly positive for individual motorists – be that in cost, health, or environmental benefits.”
Craig McKinlay MP, chair of the FairFuel APPG and Net Zero Scrutiny Group, warned that the ban could lead to “disaster” were it to go ahead.