Daily EV news · UK · 13 January 2026
Electric Vehicles
Stellantis Ellesmere Port plant to add mid-sized electric vans by 2027 under £50 million investment
Stellantis showcased electric vans from its Ellesmere Port factory at the Manchester Motor Show, where more than 1,000 workers currently produce small and compact electric vans for Vauxhall, Citroën, Peugeot and Fiat. A £50 million investment will enable the all-electric UK plant to manufacture mid-sized electric vans by 2027. Local MP Justin Madders visited the event and met Stellantis UK Group managing director Eurig Druce alongside factory workers.
Why it matters
Expanding van production at Ellesmere Port signals growing commercial EV volumes that will require depot charging infrastructure, particularly for fleet operators adopting Stellantis light commercial vehicles. The 2027 timeline gives charge point operators a clear window to plan depot and en-route charging capacity for mid-sized electric vans entering UK fleets.
Policy & Market
UK Treasury considers cutting public EV charging VAT from 20% to 5% to match home rate
Chancellor Rachel Reeves is reportedly fast tracking plans to reduce VAT on public EV charging from 20% to 5%, matching the rate already applied to home chargers, according to The Telegraph. The move follows industry pressure and concerns that the government's pay per mile road tax, due 1 April 2028, has already slowed EV uptake. The Office for Budget Responsibility forecasts the tax could reduce EV sales by around 440,000 units between November 2025 and March 2031, though the Treasury disputes this, estimating a shortfall closer to 120,000 by decade end.
Why it matters
A VAT cut to 5% would eliminate the pricing gap between public and home charging, potentially boosting utilisation at public charge points and making the business case stronger for CPOs serving drivers without off street parking. The policy shift also signals government willingness to support public charging infrastructure amid broader concerns over EV adoption rates.