INSANITY IS DOING THE SAME THING OVER AND OVER:
THE UK BUDGET AND ELECTRIC VEHICLES

The UK’s 2024 Budget has been unveiled, promising critical updates to support the transition to EVs but revealing a disappointing reliance on familiar, insufficient approaches. Despite substantial public demand for affordable, eco-friendly transport, the budget continues policies that miss key areas of public support, raising questions about whether the UK can realistically achieve its ambitious climate goals.

While the government committed over £200 million toward expanding EV charging infrastructure and a further £2 billion for strengthening the EV supply chain, much of this funding is directed toward industry players rather than consumers. This may support short-term job creation in manufacturing and infrastructure development but fails to address a significant barrier to EV adoption: cost. A substantial gap persists between the high price of EVs and what many consumers can afford, especially without grants or subsidies.

Although the benefit-in-kind tax remains favourable for businesses operating electric fleets, the benefits for individuals are minimal. For corporate users, the BIK rate will increase modestly by 2% per year through 2029, sustaining an incentive for businesses to electrify their fleets. However, individual buyers, who lack access to the same tax advantages, face few financial incentives to make the switch from ICE vehicles.

One of the budget’s most glaring omissions is its lack of support for affordable public EV charging. Rapid charging currently averages 80p per kWh, a prohibitive cost for many EV drivers, especially those who can’t charge their car at home. Although the government has allocated funding for infrastructure expansion, this measure alone does not solve the expense of public charging, which continues to dissuade potential buyers. Calls from advocacy groups to reduce VAT on public EV charging - a step that could make long-distance EV travel more economical – were ignored. Consequently, EV users who rely on public charging pay considerably more, an inequity that disproportionately affects urban drivers.

For years, government incentives, including grants, have been instrumental in driving early EV adoption. This year’s budget, however, doesn’t address this upfront cost barrier. Additionally, Vehicle Excise Duty on EVs, which begins in 2025, will erode one of the remaining advantages for prospective EV buyers. In countries like Norway and Germany, financial support for individual EV buyers has driven rapid adoption, demonstrating the importance of direct consumer incentives. By contrast, the UK’s approach seems to hinder progress by focusing more on penalising ICE vehicles than actively supporting EV affordability.

If the UK government is to meet its stated goals of ending the sale of new petrol and diesel cars , it must adopt a comprehensive strategy that addresses affordability, accessibility, and consumer confidence. Reintroducing purchase grants would make EVs attainable for more individuals, while VAT reduction on public charging could balance costs for those unable to charge at home. The decision to maintain benefits for corporate fleets while limiting support for individuals reflects an approach that prioritises industry benefits at the expense of consumer buy-in - a stance unlikely to achieve mass-market EV adoption.

In its current form, the 2024 Budget reflects the same restrictive policies that have previously hindered EV adoption, following a “business as usual” approach. The sector is feeling the consequences, with SMMT figures showing a 20% decline in car output from UK manufacturers in September, and much talk about changing production lines and closing factories across Europe. Without a change of heart, and an understanding that the primary dynamic in change is consumer demand, the government are laying the foundations for Chinese brands, making very capable and low cost EVs, to swoop into the UK leading to further decline and threat to jobs in an industry that we used to lead the world in.