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ChargeUK publishes 2025 Budget analysis on EV and charging measures

ChargeUK has published its analysis of the 2025 Budget, setting out a tripled Electric Car Grant pot, ten years of business rates relief for charging bays and £200m of extra charging infrastructure funding.

A newspaper on a kitchen table beside a model of ev charging

ChargeUK, the industry body for the UK charging sector, published its analysis of the 2025 Budget on 27 November 2025, the day after the Budget itself1. The analysis covers the Electric Vehicles Excise Duty, support for electric vehicle adoption, business rates relief for charging bays, a review of public charging costs and £200m of additional charging infrastructure funding1.

On adoption support, ChargeUK reports a tripling of the Electric Car Grant pot to nearly £2bn, an increase in the Expensive Car Supplement threshold from £40k to £50k, and a delay to planned changes to Employee Car Ownership Schemes, pushed back to April 20301. On business rates, the analysis states that charging bays and EV-only forecourts will receive 10 years of 100% business rates relief, which ChargeUK estimates is worth £1bn to the sector over the period1.

"Charging bays and EV-only forecourts will receive 10 years of 100% business rates relief"
ChargeUK, 2025 Budget analysis1

The Budget also introduced pay-per-mile motoring taxation under the name Electric Vehicles Excise Duty (eVED)1. ChargeUK describes the eVED as the Budget's worst kept secret and says news of it "cut straight through to ordinary consumers" as a reason not to switch1. On public charging costs, ChargeUK says it secured a review of the cost of public charging and the factors affecting it, due to report back in autumn 2026, but that there were no immediate responses to its asks on standing charges or VAT1.

The £200m of charging infrastructure funding is split into an additional £100m for LEVI capability, which ChargeUK calls essential to make the most of tenders now being issued for on-street charging, and a further £100m for "charging infrastructure including home and workplace"1. The government will also consult on Permitted Development Rights and new rights for cross-pavement charging, and extend First Year Allowances for EVs and EV charge points by one year1.

MeasureDetail as reported by ChargeUK
Electric Car GrantPot tripled to nearly £2bn
Expensive Car Supplement thresholdRaised from £40k to £50k
Employee Car Ownership SchemesPlanned changes pushed back to April 2030
Business rates relief10 years of 100% relief for charging bays and EV-only forecourts
Charging infrastructure funding£100m for LEVI capability plus £100m for charging infrastructure including home and workplace
First Year AllowancesExtended by one year for EVs and EV charge points

Why it matters for households

The measures that touch a household most directly are the ones that change what a car or a chargepoint costs. The tripled Electric Car Grant pot affects the purchase price of eligible new electric cars, and the higher Expensive Car Supplement threshold changes which vehicles attract that supplement1. The Electric Car Grant is separate from the closed Plug-in Car Grant, and eligibility rules are not set out in this analysis.

For homes with a driveway, the £100m for charging infrastructure including home and workplace, the one-year extension of First Year Allowances for charge points, and the consultation on Permitted Development Rights and cross-pavement charging all bear on the cost and permissions involved in charging at home1. The Cross-Pavement Charging and Pavement Channels Grant covers the case where a cable must cross a pavement. The review of public charging costs matters to households without off-street parking, who rely on public charging where VAT is higher than for home charging1. ChargeUK notes no immediate response on VAT or standing charges, so no change to either has been reported1.

What happens next

The review of the cost of public charging and the factors affecting it is to report back in autumn 20261. The government will consult on Permitted Development Rights and new rights for cross-pavement charging, with no date given in the analysis1. ChargeUK says there is significant work to do in 2026 to keep the transition on track1.

Sources1 cited
  1. ChargeUK's 2025 Budget analysis, chargeuk.org