Budget paints mixed picture for EV sector

BUDGET 2025: Government needs to go further to support EV transition, says ChargeUK’s Vicky Read

Drivers and the companies investing in charging infrastructure were looking for clarity on the EV transition today. Instead we got a mixed picture.

More drivers switching to electric will be able to save up front, but they will face increased running costs thanks to the EV Excise Duty and delayed action on the causes of surging public charging prices.

Government has listened to our call to defer business rates on EV charging bays, heading off further costs for charge point operators and their customers. Funding to help local authorities work with our sector to deliver charging for their communities is also welcome. These inclusions send a strong signal to investors that this government intends to back the charging sector.

But to build at the rate required and to deliver widespread and affordable charging for all drivers, we need government to go further.

It has chosen not to act immediately on the sky-high energy costs that are pushing driver prices up today, despite promising to look at energy costs affecting other sectors. It has not abolished the VAT penalty for public charging, risking EVs becoming a luxury for those with driveways.

The announced review on public charging costs offers the opportunity to remedy these omissions. The review will need to look at VAT, standing charges, policy levies and wholesale energy costs, with actions implemented swiftly, given that our sector is facing even higher energy bills from April.  

The charging industry stands ready to deliver what UK drivers need. We expect government to back us.

Vicky Read is chief executive of ChargeUK