Plans to ban the sale of new diesel and petrol vehicles from 2030 have been branded 'economic madness' as a new report suggests the move will cost already cash-strapped households £14,700 each.

In eight years time the government intends to stop sales of new cars powered by fossil fuels as part of efforts to reduce the UK's greenhouse gas emissions.

But fresh research into the policy for the Fair Fuel All Party Parliamentary Group for Motorists and Hauliers, claims the sheer cost of the switch to electric vehicles will dwarf environmental benefits.

Those benefits from the planned 2030 ban total an estimated £76 billion, analysis claims, compared to costs to the UK, which could eventually add up to more than £400 billion.

Critics of the ban, which want to see it scrapped in favour of a greater focus on developing greener alternatives within the motor industry, say the cost to both the country's economy and individual households will be 'detrimental'.

With fewer diesel and petrol cars both being sold and on the road, less money will come from fuel duty and VAT which - says the report - 'represents a huge hole in public finances that needs to be addressed'.

Yet despite lower numbers of gas-guzzling cars, the anticipated benefit to the environment will also be lower than might be assumed, claims the study, because 50% of any reduction in emissions from car exhausts will be offset by increased emissions in the production of more electric vehicles.

High energy prices, the unpredictable cost of electricity and the need for investment in millions more charging points - both in homes and on-streets - suggest costs could quickly mount up as the UK attempts a vast switch to electric vehicles, with businesses and homes also faced with contributing to the huge bill.

'Significant costs' for the average household

Alongside the higher price tag of an electric car compared to one powered by fossil fuels, long waiting times to charge it, the price of electricity and the ban's ability to really push up the costs for either maintaining or scrapping an existing diesel or petrol car will all place pressures on businesses and households and in particular on those running vehicles.

But alongside rising costs attached to owning an ageing diesel or petrol car, the motoring industry could also face large job losses, it is warned, as firms move away from making traditional engines and car parts.

And with 97% of active mechanics, says the study, not currently suitably qualified to take on work with electric fleets, employees could face additional stresses finding a job and maintaining their income if the ban comes into force.

APPG Chair and Thanet South MP Craig Mackinlay has described the government's intention to ban diesel and petrol cars in seven years time 'an expensive experiment'.
He said: "Sooner or later the public will rebel against this madness. Better to have the rational debate now before we fully embark on a failing and expensive experiment."

Fellow MP and group member Sir John Redwood MP added: "There is a lot of common sense in the APPG Fair Fuel Report. Greener transport needs to work for the people it wishes to attract as users.

"You cannot get to work or run the children to school on a government target. Government needs to explain how these changes are going to be better, popular and affordable."