UK Treasury considers cutting public EV charging VAT from 20% to 5% to match home rate
By Eve
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.
Source
- Original title
- “Tax cuts on EV charging could save you big money”
- Published
- 13 January 2026 (date approximate)
- Updated
- 22 September 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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