Fiscal Stability and Future Prospects
The forthcoming Budget 2026 aims to establish a sound fiscal framework, providing both relief for the ongoing cost of living crisis and a more manageable environment for businesses. By addressing these pressing issues, the government seeks to instil a renewed sense of optimism for the future.
Supporting the Electric Vehicle Transition
The shift towards electric vehicles (EVs) is gaining momentum, with sales having surged by 36% compared to the previous year. Over 190,000 drivers have transitioned to electric cars in the past year, benefiting from government incentives that have significantly reduced their costs. However, the government acknowledges that escalating public charging fees could hinder this positive trend.
In response, a review of public EV charging costs was commissioned at Budget 2025, highlighting the need for intervention as prices have risen sharply in recent years. To alleviate the financial burden on electric vehicle users, the government is set to lower charges at local, lower-powered public charging points, offering an average annual saving of approximately £150.
From spring 2027, an investment of £100 million over two years will be directed towards reducing the cost of charging for motorists using these lower-powered public charge points, typically located on residential streets. This initiative aims to support drivers who rely on longer charging periods, whether during the day or overnight, as these points represent about a third of the existing charging infrastructure.
Furthermore, the government is taking proactive steps to enhance the system’s efficiency. A taskforce, led by industry experts, will be established to investigate the feasibility of “tariff porting,” which would allow drivers to utilise their more affordable domestic energy rates at select public charging locations. Additional details will be announced by the Department for Transport in the near future.
Investment in Electric Vehicle Infrastructure
The government’s commitment to the electric vehicle transition is a crucial component in achieving the UK’s net zero objectives. This initiative is not only promoting economic growth and productivity but is also providing drivers with savings of up to £1,750 annually compared to traditional petrol or diesel vehicles. The transition to EVs is also contributing to the creation of cleaner and quieter urban environments across the UK.
To facilitate this transformation, the government has allocated £7.5 billion towards supporting the EV transition until 2035. This includes £2 billion through the Electric Car Grant programme, which has enabled over 190,000 drivers to save as much as £3,750 on new electric vehicles. Currently, there are over 124,000 public charging points across the UK, reflecting a year-on-year increase of 7.4%, as reported by official statistics.
In addition, the government has pledged £600 million to further support the expansion of EV infrastructure, including £480 million dedicated to the Local EV Infrastructure fund. This fund is designed to assist local authorities and charging point operators in installing over 100,000 additional chargers throughout England.
Addressing Charging Costs and Accessibility
An independent review of public EV charging costs has revealed that since 2021, the average prices for lower-powered and higher-powered chargers have escalated by 69% and 94% respectively, in real terms. This alarming trend poses a significant obstacle for drivers, particularly those without access to cheaper home charging solutions. With approximately one-third of UK households unable to benefit from off-street parking or driveways, the government is stepping in to reduce costs for those reliant on local, lower-powered public chargers.
Additionally, regulatory measures have been implemented to facilitate the installation of cross-pavement chargers, making the process cheaper, simpler, and faster. As of 21 October, drivers are no longer required to obtain planning permission to install these chargers, which connect homes to vehicles under the pavement. This change is expected to save drivers up to £300 on installation costs, enabling those without off-street parking to charge their vehicles at home for as little as 2 pence per mile. Earlier in the year, in February, the government also extended and increased grants for home and workplace charging installations, particularly benefitting flats, rented properties, on-street parking, and businesses.