£28b.

In today’s news we have the good news that, “despite Brexit” as those who still haven’t accepted that the vote to leave wasn’t about the economy but the right for our parliament to take its own decisions, Luton could become centre for PSA group’s van growth plans.  In Auto Express it is reported that the Vauxhall/Opel PACE! recovery plan includes strong targets for commercial vehicle growth that could be good news for the Vauxhall van plant in Luton.   

Michael Lohscheller, CEO of Opel/Vauxhall, revealed as part of the PACE! plan that he was targeting an increase in LCV (light commercial vehicle) sales of 25% between 2017 and 2020.   Part of that will come from the new Combo small van, which arrives next year. Like the new Corsa, due in 2019, it will be based on the PSA group small car CMP platform.  And like the Corsa, it will be one of the first fully-electric Vauxhall vehicles with a Combo EV set to be available in 2020.    

The rush to electric is really under way.  So here’s my question for today.  Given that in total, duties on petrol and diesel add up to almost £28bn a year for the exchequer with more than 65% of the cost you pay at the pumps goes to the exchequer, where will that money come from in an electric future?

An electric car charged from the grid will currently generate just 5p in VAT for every pound spent. If the car is charged directly from solar panels on a garage roof, the Treasury is likely to go empty-handed.   £28b to replace that provided to him thorough you filling up at the pump is a big number. 

I wonder if the up coming Budget will begin to show the way?