UK picks up EV subsidy baton in boost to foreign automakers

Labour government plans would also include an investment in charging stations, heat pumps

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China’s BYD has a new dealership in an historic building in the conservation area of Berkley Street Mayfair, London. Photo: Taylor Design.

Just a few weeks after the U.S. government said it will end former President Joe Biden’s program to grant subsidies to buyers of electric vehicles later this year, the UK’s Labour government said it will soon begin a plan to offer up to £700 million ($940 million) in grants to help cut the costs of EVs for buyers.

It added that it is also discussing adding subsidies for heat pumps, which would provide heat and air conditioning for consumers in a country long known for shunning what it calls “aircon,” despite rising heat during the summer.

The plan, which the government had set aside funds for in its spending scheme earlier this year, would also include investing in charging stations outside business centers and homes of people without drivers, to battle the perception that there are not enough charging outlets to make EVs worthwhile.