London taxpayers are potentially facing significant financial losses as Breathe, an electric vehicle company supported by London mayor Sadiq Khan has gone into administration. Breathe supplies electric vehicles to companies, including Tesla, to private-hire drivers, received an injection of over £3 million from the Mayor of London's Energy Efficiency Fund (MEEF), as per information. The collapse of Breathe has raised concerns about the potential financial impact on taxpayers in London.
A spokesperson for the mayor said that the MEEF stands as the largest of its kind in the United Kingdom. With its substantial reach, the fund has already made investments in 17 projects throughout London, mobilizing an impressive sum of over £380 million in total investment. These initiatives are anticipated to result in significant environmental benefits, with an estimated reduction of over 38,000 tonnes of CO2 emissions and a saving of nearly 40 million kilowatt-hours of energy.
The original investment of £3.2 million made by MEEF in Breathe accounts for less than 1% of the overall funding until now.
The administrators who have been appointed are actively collaborating with all involved parties to facilitate the successful sale of the business. In the event that it becomes necessary, they are also exploring the possibility of liquidating assets to generate funds that can be used to repay the outstanding debt.