Mobility Portal, Spain
Date: February 22, 2024
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By Mobility Portal
United Kingdom
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UK expands subsidy to encourage the transition to green taxis with funding of £6,000 per vehicle

The United Kingdom has decided to extend the Plug-in Taxi Grant subsidy until April 5, 2025. Since its introduction in 2017, the program has provided over £50 million to support the purchase of over 9,000 zero-emission taxis.
Electric London black cab connected to a rapid charging point in central London

More green taxis will take to the UK’s roads thanks to an extension to the Plug-in Taxi Grant announced yesterday, following its initial success.

Cab drivers will be able to keep up momentum through extended funding until 5 April 2025 at a rate of 6,000 pounds per vehicle, providing certainty to those who are looking to make the switch to electric in the next year.

Since its introduction in 2017, the Plug-in Taxi Grant has been met with enthusiasm, providing more than 50 million pounds to support the purchase of over 9,000 zero emission cabs – supporting skilled British jobs in the car industry and helping to decarbonise the taxi fleet.

As a result of the grant driving change in industry, over 54 per cent (8,299) of London’s licensed taxis are now electric, with the number of electric taxis increasing by 24 per cent in the last year alone as more drivers utilise government funding.

Technology and Decarbonisation Minister, Anthony Browne, states: “Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this government’s plan to back drivers.”

“From Redbridge to White City, it’s now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric. The grant has been a huge success so far, and I’m pleased our funding will be continued for another year to help cabbies make the switch to new vehicles,” he adds.

The electric taxi market has grown rapidly since the grant’s introduction, with sales overtaking the number of diesel taxis sold in London in 2022, marking a milestone for the sector.

Nationally, more than one in ten (12 per cent) taxis are now zero emission capable.

The government is continuing to target incentives where they have the most impact while delivering value for money for the taxpayer, which is why a reduced grant level of 6,000 pounds has been chosen to support the market as it matures further.

Chris Allen, Managing Director at London EV Company, says: “The announcement is a positive signal to the taxi trade that the government remains committed to supporting the electrification of our iconic industry and provides important support for drivers for another 12 months.”

“LEVC is continually innovating to deliver the latest in clean, accessible mobility solutions. We will continue to work with government to deliver for drivers and passengers across the UK,” he adds.

Steve McNamara, General Secretary of the Licensed Taxi Drivers Association, comments: “London’s licensed taxi drivers are proud to be leading the way in adopting zero emission electric taxis. Our members have invested record sums in these clean, green vehicles and the PiTG has played a vital role in making this possible.”

“The announcement provides the certainty and support hard working taxi drivers and fleets need to continue investing in the future of this important sector and delivering the high-quality, accessible service London’s iconic black cabs are known for, all whilst helping to clean up our air and working towards net zero,” he adds.

Since 2011 the government has provided over 1.9 billion pounds in grant funding to decarbonise our roads, supporting the purchase of over 350,000 zero emission vehicles.

These measures follow the department’s recent announcement that the rollout of EV charging points is being accelerated through our Plan for Drivers.

There are now over 55,000 public charging points across the country, with the number of charging points rising 46 per cent over the last year.

Grants are also available to help the transition through the government’s workplace charging scheme (WCS) for businesses and schools, as well as people in flats and rented accommodation through the electric vehicle chargepoint grant.

In addition, the on-street residential chargepoint scheme is open to all UK local authorities, while 381 pounds of Local Electric Vehicle Infrastructure (LEVI) funding is already being delivered to English local authorities.

Read more: The government has launched a new funding programme to increase the number of charging points in the UK

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