The Chancellor has been accused of “throwing good money after bad” after new analysis revealed the Government is spending more than £13 protecting petrol and diesel drivers for every £1 allocated to making public electric vehicle charging cheaper.
Research by New AutoMotive found that extending fuel duty relief will cost taxpayers £1.35 billion over two years, compared with £100 million committed to reducing the cost of local public EV charging.
Budget Measures Under Fire
The Budget extends the 5p-per-litre fuel duty cut until July 2027, while leaving VAT on public EV charging at 20%.
Tanya Sinclair, CEO of Electric Vehicles UK, said: “The Chancellor is throwing good money after bad. Instead of investing in a future where drivers are less exposed to volatile oil prices, he's spending billions cushioning the cost of staying dependent on them.”
Fairness Concerns Raised
Ginny Buckley, chief executive of Electrifying.com, said: “Imagine paying more tax on electricity simply because you don’t have a driveway. That’s effectively what millions of EV drivers are being asked to accept.
“The Prime Minister talks a lot about fairness, but it’s hard to see the fairness in that.
“We should be making electric cars an easy choice for ordinary families. Instead, we’ve got a confusing patchwork of promises, with the biggest savings still reserved for people who can plug in at home.”
Oliver Brighton, CFO of charging company char.gy, said: “If you have a driveway, your electricity attracts 0% VAT for now. If you don't, you're charged 20% at a public charger. It's the same electricity powering the same type of car. Why should where you park determine how much tax you pay?”
Impact on Drivers
The Government's £100 million charging package could save eligible motorists around £150 annually from spring 2027.
However, with mileage-based EV taxation planned from April 2028, industry leaders warn that rising costs could discourage families from switching to electric.
