What does the Budget mean for EVs?

BUDGET 2025: ChargeUK’s Vicky Read offers an analysis of the government’s plans for electric vehicle taxation and support

The Budget was not the only big event yesterday. Just across the river, ChargeUK’s All Member Council met for the final time this year, a chance hear our Budget analysis hot off the press, listen to our guest speaker Jane Dennett-Thorpe FEI from Ofgem and to network over drinks. 

For those not in the room, here's our Budget take. Members will also hear more at our Open Policy Meeting tomorrow when we will be joined by DfT and our business rates advisors. 

Electric Vehicle Excise Duty

Pay-per-mile, or to use its new name, the Electric Vehicle Excise Duty (eVED), was this Budget's worst kept secret (after the OBR leak). The question for yesterday was therefore whether the chancellor could offer enough other measures to protect the EV transition.  

Support for electric vehicle adoption

For the charging sector to invest, we need confidence about EV adoption. The interventions to support this yesterday were substantial: a huge boost to Electric Car Grant (ECG), with the pot tripled to nearly £2bn; the Expensive Car Supplement threshold increased from £40,000 to £50,000; planned changes to Employee Car Ownership Schemes pushed back to April 2030. The measures are not to be sniffed at, but the hitch here is consumer sentiment. News of the eVED, as a reason not to switch, cut straight through to ordinary consumers; the EV and charging industries will need to work hard to counter this. 

Business rates relief for EV charging bays

Charging bays and EV-only forecourts will receive 10 years of 100% business rates relief. This follows intense engagement between ChargeUK and government over the past year. We estimate the relief is worth £1bn to the sector over the period. A threat successfully taken off the table. 

Cost of public charging review

Disappointingly, there were no immediate responses to our other asks, on standing charges or VAT. However, ChargeUK was successful in pushing for a review on the cost of public charging and the factors affecting it, to report back next autumn. A concerted effort will be needed to secure real changes so we can deliver affordable charging for all. 

£200m for charging infrastructure

An additional £100m for LEVI capability is essential to make the most of the tenders now being issued for on-street charging. A further £100m for ‘charging infrastructure including home and workplace’ is also welcome. 

Cross pavement and First Year Allowance extension

Finally, government will consult on Permitted Development Rights and new rights for cross-pavement charging; and extend First Year Allowances for EVs and EV chargepoints by one year to help fleets and workplaces transition.
 
In summary, the eVED has undoubtedly muddied the waters at a delicate point in the transition. The range of measures offered by government on EVs and charging, in the context of a Budget that was short on spending and long on tax increases, demonstrates it is serious about this transition. But there is significant work to do in 2026 to ensure it stays on track. 

Vicky Read is chief executive of ChargeUK