Question reference: S6W-25011
- Asked by: Liam McArthur, MSP for Orkney Islands, Scottish Liberal Democrats
- Date lodged: 31 January 2024
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Current status: Answered by Fiona Hyslop on 15 February 2024
Question
To ask the Scottish Government whether it has made any projections for any inflation-based losses incurred on interest-free loans issued through its new and used electric vehicle loan schemes, and, if so, whether it will publish these projections.
Answer
The Scottish Government has not made any projections for any inflation-based losses incurred on the interest-free loan. In response to the maturing EV market as well as the current cost of living crisis we have reduced the amount of funds provided per vehicle slightly to maximise value for money and impact of loan funding. We regularly review the loan to ensure it benefits as many people as possible. This included opening up the loan eligibility to support the used EV market in 2020.
Funding provided to Energy Saving Trust (EST) to deliver the Low Carbon Transport Loan needs to be spent each year to deliver Scottish Government policy, therefore, it is not possible for the Scottish Government to hold onto funding to accrue interest.