John McDonnell announces interest free loans for electric cars
Speaking on the Today programme, Shadow Chancellor John McDonnell announced that Labour will introduce 2.5 million interest free loans for the purchase of electric cars.
The loans of up to £33,000 will allow low to income households, those living in rural areas and independent contractors and SMEs middle to save on new electric cars. The government will cover the £1,500 cost of interest on a loan, with individuals saving up to £5,000 over time.
The scheme will ensure that access to the Electric Car Revolution is broadened beyond elites, as part of Labour’s vision of clean transport for everyone.
The interest-free loans will require participation in a mass trial of Vehicle-2-Grid technology which will allow the UK to transition to renewable energy.
This new technology will allow electric cars to store excess energy from the national grid, smoothing energy supply from renewable sources.
The scheme will boost the British automobile industry and support the UK’s transition away from petrol and diesel cars.
John McDonnell MP, Labour’s Shadow Chancellor, said:
“This will stimulate the automotive industry, it will sustain jobs in the conversion from fossil fuels to electric but actually it will create new jobs as well.
“So this is beneficial in terms of the climate, it is beneficial for those people who want to convert their carbon-fuel powered car into an electric vehicle that is sustainable.
“At same time it will help support the automotive industry and create jobs. Those jobs are in areas where we have had real issues, particularly with Brexit.”
Note to Editors
The Government has been slammed repeatedly, including by the Society of Motor Manufacturers, for scrapping support for electric cars.https://www.theguardian.com/environment/2018/oct/12/scrapping-uk-grants-for-hybrid-cars-astounding-says-industry
500,000 interest free loans would be issued every year, for five years. Maximum loan size of £33,000 in Year 1, dropping as EV costs fall, issued by car manufacturing and dealers but guaranteed by the government.
Interest free loans such as these are being provided in Scotland.https://www.gov.scot/policies/renewable-and-low-carbon-energy/low-carbon-transport/
Vehicle-2-Grid technology will allow the UK to transition to renewable energy by balancing the peaks and troughs of caused by renewables. Electric cars will store energy when demand is low (e.g. during the night when the wind is blowing but people are asleep), and discharge into the grid when energy use peaks (e.g. in the evening as people arrive home from work). This smooths out demand and reduces reliance on gas-powered power stations that have needed to be switched on at this time https://www.theguardian.com/environment/2019/jul/11/electric-cars-could-form-battery-hubs-to-store-renewable-energy