Resonates Managing Director, Chris Dace, reflects on how budget announcements match the expectations of senior leaders in the e-mobility sector.
The Government’s October budget was touted to be the greenest ever, which created a lot of speculation and ‘wish lists’ from many within the cleantech and climate sectors.
At a pre-budget event hosted by Resonates, leaders from the e-mobility supply chain expressed their hopes and concerns about what was to come. Many wanted a clear EV strategy accompanied by funding and support to address issues holding back the mobility transition.
Now that the dust has settled, there’s a clearer picture of whether Rachel Reeves’ announcement of £100 billion over the next five years meets the expectations and needs of the e-mobility sector.
A prominent demand from e-mobility leaders in the budget build-up was clarity and consistency over the zero-emission vehicle (ZEV) mandate or ‘ICE ban’.
Harpreet Singh, Head of Residential at charge point operator EVC (EV Charging Ltd), commented; “I would like the manifesto pledge to bring the 2035 ICE ban back to 2030 to be honoured. The extension created massive uncertainty for businesses in the e-mobility sector and created a perception among the public that, if it can be extended once it can be extended again. When really, we don’t have that luxury.”
The Government has reaffirmed its manifesto promise, sending a clear signal to the e-mobility sector and the public.
The intention to ban the sales of new ICE vehicles by 2030 was confirmed, and by 2035, all new cars and vans must be zero-emission, phasing out the sale of hybrid vehicles.
End-user businesses and e-mobility leaders see the capital cost of vehicles and charging infrastructure as an issue.
Justin Tarr, VP Sales and Operations, at L-Charge Operations UK Limited, noted that “despite electric vehicles typically having a lower whole life cost of ownership compared to ICE vehicles, a prohibitive factor remains the upfront capital investment needed to transition to a green fleet. To maintain momentum, it’s important for governments to keep the focus on net zero and maintain strong incentive-backed strategies to overcome these barriers to enable a fast transition.”
The Government has clearly delivered for fleets, with several incentives for company cars and commercial vehicles.
The plug-in van grant received an additional £120 million over 2025-26. This will support businesses’ move to low-emission vans with up to £5,000 off the purchase price. The 100% First Year Allowances for electric cars and charge points was extended for a further year, allowing companies to deduct the cost of these investments from their pre-tax profits.
Though benefits in kind (BIK) tax rates for company EVs will rise by the end of the decade, they will continue to favour electric cars, incentivising drivers to go electric. Giving businesses clarity for the future, the Chancellor revealed EV company car tax rates will reach 9% in 2029-30, substantially less than the 39% tax rate for ICE company cars.
Funding for public charge point installations was raised ahead of the budget, along with planning reform.
Kevin Welstead, Director at independent connection provider Energi Solutions, said, “While some money is available for local authorities, I’d welcome a significant increase in funding for national infrastructure for EVs.”
He added, “The biggest challenge to the industry is a lack of consistency around planning and the legal knots surrounding it. Each local authority views renewables and decarbonisation assets differently, which leads to delay and a lack of investor confidence.”
The Government has committed £200 million in 2025-26 to accelerate charging infrastructure, including support for local authorities across England to install on-street chargers.
The existing Local Electric Vehicle Infrastructure (LEVI) Fund, begun in March 2023, is already around £380 million.
While the Government is meeting expectations when it comes to committing money, the balance between national and local funds may not meet e-mobility leaders’ expectations.
Many senior leaders emphasised upgrading the national grid as a priority matter ahead of the budget; connection speed and available capacity were key issues.
Ben Croxford, Operations Director at independent distribution network operator Eclipse Power Networks, commented, “I would welcome any incentives or funding to speed up grid connections, which in some cases are now over a 10 or 12 year wait.”
He added, “Our research has shown the GB network to have significant spare capacity that could be effectively used to speed up EV infrastructure roll out. Instead, it is underused. And unfortunately, there is no holistic approach coming from the Government or industry bodies on how to unlock it.”
The Government is working with the new National Energy System Operator (NESO) and Ofgem to address connection speeds. NESO has recently released its action plan, highlighting the need for a fourfold increase in the construction of new grid network infrastructure to meet the UK’s 2030 plan for a decarbonised grid.
The Government is considering the NESO recommendations and will release its own Clean Power 2030 Action Plan later this year.
Many senior leaders will be pleased with the budget has offered them. There are several areas where the Government has met or surpassed the e-mobility sector’s expectations, including support for fleets, infrastructure funding, and reaffirming its promise on the ICE ban.
Key foundational issues remain. Grid connections and planning reforms must be addressed. Meanwhile, e-mobility leaders have called for consistent commitments on the just transition and legislating against EV misinformation. The Government has not mentioned misinformation, and the combination of the fuel duty freeze, increased vehicle excise duty for EVs, higher bus fare cap and noise surrounding the ‘Tesla tax’ allowance send mixed messages for the just transition.
