UK Government spending review sees £1.4bn allocated to nationwide EV adoption

June 12, 2025 George East

The UK government has allocated £1.4bn to support the adoption of electric vehicles across the country, as part of its most recent spending review delivered by Chancellor Rachel Reeves.

The £1.4bn is part of the government’s £2.6bn Clean Energy drive, which will be spent up until 2030. The funds will be used to support the UK’s continued uptake of all-electric cars, vans, and heavy goods vehicles (HGVs).

In line with its ambitions to have the UK switch to a zero-carbon economy, the government has outlined that 100% of all brand new vehicles sold in the UK must be zero emission from 2035 onwards.

As part of the spending review, Reeves outlined that an additional £400m will be spent on EV charging infrastructure nationwide to build on the number of public charging devices already available. According to government figures, there are now over around 76,500 public chargers in the UK; around 32% more than 2024. Beyond that, there was no indication of how the money will be used to support EV adoption.

Despite the welcome investment, Reeves’ spending review was still criticised by industry leaders for failing to address some of the biggest barriers towards EV adoption, including the cost difference between public and home charging.

“Price and charging remain the biggest friction points,” explained Carwow’s head of editorial, Ian Reid. “Equalising the VAT between home and public charging is a simple fix – right now, it’s cheaper to charge on a driveway, which just isn’t fair or practical for millions of people in flats or urban areas.

The difference between private and public charging costs remains the biggest obstacle to EV adoption (Image: Fastned)

“Halving VAT on new EVs and removing the cost barriers on charging would give consumers the confidence they need – and signal that Britain is serious about making the EV transition work. The private sector is ready. Now it’s time for government to step up.”

“At Carwow, we’ve seen a 77% rise in battery electric vehicle enquiries between May 2024 to May 2025 – so we know that public interest is clear and growing.

“What we need now are fiscal policies that keep up with that demand – from direct purchase incentives to scrapping VAT on public charging. This isn’t just about helping drivers make the switch – it’s about protecting jobs, attracting investment, and staying on track to meet our net zero targets.”

Vicky Edmonds, of the Electric Vehicle Association England (EVA) went further by saying: “VAT on public charging alongside more planning and regulatory barriers, continues to promote a ‘two-tier’ system between EV drivers with and without access to reliable and cost-effective home charging.”

During the most recent spending review, it was hoped that Reeves might tackle the issue of the government’s Expensive Car Supplement (ESC) on EVs costing more than £40,000. While the issue was not addressed, industry observers hope that the government may raise the threshold from with the ESC applied in this year’s Autumn Budget.