Daily EV news · UK · 17 March 2026
EV Charging
Simmons & Simmons publishes guidance on VAT treatment of public EV charging supplies in the UK
Law firm Simmons & Simmons has issued guidance on the VAT implications of public EV charging in the United Kingdom. The publication addresses how VAT applies to charging services supplied to the public, a topic of growing importance as the UK's charging network expands. The guidance appears on the firm's website and was surfaced via Google News.
Why it matters
Clear VAT treatment is critical for charge point operators pricing public charging services and for local authorities or private landlords tendering infrastructure projects. Uncertainty over tax liability can affect business cases and procurement structures for new installations.
UKBIC opens Flexible Pilot Line in Coventry to bridge lab and gigafactory scale for battery startups
The UK Battery Industrialisation Centre has launched a Flexible Pilot Line in Coventry, backed by £38 million in government funding through the Faraday Battery Challenge, to help battery startups and SMEs validate new chemistries and materials before moving to full commercial production. The facility, described as the only one of its kind in Europe, will initially support Echion and Ilika, with Ilika collaborating with Jaguar Land Rover and Oxford University. UKBIC says the line fills a gap between laboratory development and its Industrial Scale Line, supporting battery development for EVs, defence and maritime applications.
Why it matters
The facility gives UK battery innovators a lower risk route to prove manufacturing viability at scale, potentially accelerating the domestic supply chain for EV cells and reducing reliance on imported technology. For procurement teams and CPOs, a stronger UK battery sector could mean more local sourcing options and faster adoption of next generation chemistries that improve charging performance or cost.
UK tribunal rules public EV charging should carry 5% VAT rate instead of 20%
A First-tier Tribunal ruled last month that public EV charging should be taxed at the domestic 5% VAT rate rather than the 20% rate currently applied by HMRC, following a case brought by community operator Charge my Street with advice from Deloitte. The ruling hinges on existing VAT law stating that provision of less than 1,000 kWh per month to a person at any premises counts as domestic supply, a threshold impractical for EV drivers to exceed. HMRC is considering the decision and potential next steps, including a possible appeal.
Why it matters
The ruling could materially improve the economics for UK charge point operators, many of whom currently operate at a loss, by reducing the VAT burden on public charging sessions. If upheld, the 15 percentage point VAT reduction would flow through to either improved operator margins or lower consumer pricing, potentially accelerating infrastructure deployment.
Dover Priory overhead charger sits idle as tight turning circle blocks £34 million Fastrack electric buses
A government funded overhead pantograph charger installed at Dover Priory railway station for the new £34 million Fastrack service linking Whitfield and Dover remains unused because Stagecoach drivers cannot safely position the zero emission buses close enough to the kerb. Kent County Council acknowledges the turning circle is tighter than ideal and has committed to realigning the curved kerb to enable access. The charger is designed to lower onto the bus roof for rapid battery top ups.
Why it matters
The case highlights infrastructure planning gaps that can delay return on investment in charging assets and disrupt service reliability for operators deploying electric fleets. It underscores the need for site surveys that account for vehicle swept paths and driver manoeuvring constraints before charger commissioning.
Electric Vehicles
UK Government Funds 484 Electric Buses for Liverpool, Nottinghamshire and West Northamptonshire
The UK government has allocated funding for approximately 484 new electric buses to serve Liverpool, Nottinghamshire and West Northamptonshire, replacing diesel vehicles. Transport Secretary Heidi Alexander announced the investment, emphasising improved connectivity and air quality benefits. The article notes electric buses offer operational cost savings through lower fuel costs and potential grid support via bidirectional charging technology.
Why it matters
The procurement signals sustained public sector demand for electric bus fleets and associated charging infrastructure across multiple English regions. Operators and charge point providers can anticipate tenders for depot charging solutions capable of supporting nearly 500 vehicles, with potential vehicle to grid integration requirements.
West Northamptonshire secures £2.2 million for 17 electric buses, bringing Government-backed fleet to 71
The UK Government has awarded £2.2 million to West Northamptonshire to fund 17 new electric buses, adding to 54 already funded under the Zero Emission Bus Regional Areas (ZEBRA) programme for a total of 71 vehicles. The Government's total investment in the roll-out stands at £11.8 million, with operator Stagecoach contributing £28.1 million. The first buses are being prepared for service and will replace diesel vehicles across Stagecoach's fleet in the area.
Why it matters
The expanded ZEBRA programme signals continued public funding for zero-emission bus fleets, creating procurement opportunities for vehicle suppliers and charging infrastructure providers. With Stagecoach committing more than double the public investment, the project underscores the scale of depot charging and grid upgrade work required to support large electric bus deployments.
Alexander Dennis wins 164 bus order from Arriva UK, largest single deal to date
Alexander Dennis will supply 164 Enviro200 and Enviro400 low emission buses to Arriva UK Bus, comprising 113 single deckers and 51 double deckers for delivery across 15 depots in England and Wales during summer and autumn 2026. The order follows an earlier 57 bus delivery in early 2025, taking recent deployments to 221 vehicles. All buses will feature SmartPack efficiency technology to qualify for Bus Service Operators Grant incentive payments.
Why it matters
The deal marks the largest single bus order Arriva has placed with Alexander Dennis and signals sustained fleet investment in low emission public transport infrastructure across multiple English and Welsh depots. Procurement teams should note the BSOG qualification criteria and the phased delivery timeline extending into late 2026.
UK public sector fleets face 2027 zero emission deadline, three years ahead of national ban
Central government car and van fleets, including arm's length bodies such as National Highways and the Environment Agency, must reach 100% zero emission by 2027 under a Government mandate, three years before the 2030 phase out of new petrol and diesel sales. The 2025 Fleet200 Strategy Network Report found that more than two thirds of the 34 public sector fleets surveyed identified electrification as their biggest challenge, with budgets failing to keep pace with inflation affecting both capital and operational expenditure. The 2027 target does not apply to local authorities.
Why it matters
The accelerated 2027 deadline for central government fleets creates a concentrated procurement window for charging infrastructure and fleet electrification services, particularly for organisations operating under nationwide frameworks. Budget constraints amid inflation add pressure on public sector tenders, potentially shaping pricing and contract structures across the CPO market.
Policy & Market
Labour urged to cut public EV charging VAT from 20 per cent to five per cent, saving drivers £350 a year
A poll of 3,700 UK motorists found 47.5 per cent would be more likely to switch to electric vehicles if VAT on public charging dropped from 20 per cent to five per cent, a change that could save drivers around £350 annually. On 27 February 2026, a First-tier Tribunal ruled that public EV charging should be subject to the five per cent VAT rate, addressing an imbalance that penalised drivers without driveways. More than a fifth of respondents lack home charging capability, and 76 per cent said cheaper public charging would improve EV accessibility for those without home options.
Why it matters
The tribunal ruling and potential VAT cut could reshape demand for public charging infrastructure, making it more competitive with home charging and expanding the addressable market for charge point operators serving drivers without off-street parking. Procurement teams may see increased utilisation and revenue potential at public sites if the lower VAT rate is implemented.