The Resolution Foundation, a think tank aimed at improving the standard of living for low and middle-income families, recommends a new tax to prevent the loss of public revenue.

The report finds that the incentives to switch to electric cars outweigh any new taxes for potential owners, as operating costs are significantly lower than traditional vehicles.

The report also suggests reducing VAT on public electric car charging points, which are mostly used by less well-off households, while richer people are more likely to have home charging points.