Will the next Budget see more taxes on EV usage? Maybe so, there is a strong case for funding roads, bridges, tunnels and other infrastructure via VED/vehicle duty. But will this slow down the switch from diesel and petrol in the fleet sector?
Some useful comments ahead of the next UK Budget here, from Tom Rowlands, Managing Director, Global EV Solutions at Corpay:
“We cannot ask fleets to electrify faster while making electric vehicles harder to operate.”
“The practical reality for businesses is becoming more complex. Fleets are already managing home, workplace and public charging, different reimbursement arrangements and changing tax treatment. From April 2028, electric cars will also become subject to the new mileage-based Electric Vehicle Excise Duty, initially set at 3p per mile for battery-electric and hydrogen cars and 1.5p for plug-in hybrids.”
“At the same time, investment decisions are being made against a changing policy backdrop. The current 100% first-year capital allowances for qualifying zero-emission cars and EV chargepoints presently run only until spring 2027.”
“For businesses investing over several years, that lack of long-term visibility makes planning more difficult than it needs to be.”
“The next stage of electrification has to be about operational simplicity. Clearer policy, practical administration and greater certainty over future costs will help fleets make the transition with confidence rather than adding another layer of complexity to an already significant investment decision.”
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