Society of Motor Manufacturers and Traders of UK has urged that electric vehicles must  made tax-free to boost sales,  as demand for new cars fell by 2.9% last month.

Some 79,594 new cars registered in February compared with 81,969 during the same month in 2019, according to the Society of Motor Manufacturers and Traders (SMMT).

The trade association blamed weak consumer confidence and confusion over what fuel technology to buy.

It called for the Chancellor to use next week’s Budget to remove VAT from all new battery electric, plug-in hybrid electric and hydrogen fuel cell electric cars.

Such a move could cut the purchase price of an average family battery-powered runaround by around £5,600.