What does the Autumn Budget 2024 mean for the electric vehicle industry?

Extended EV purchase incentives:

First up, there’s an extension on some very useful purchase incentives. The Vehicle Excise Duty (VED) First Year Rates for EVs will be maintained, which keeps costs down for new buyers, keeping EVs more affordable compared to combustion engine (ICE) and hybrid vehicles, increasing the appeal of EVs over traditional fuel options.

Company Car Tax reliefs for EVs are preserved at a favourable rate, continuing the current rate of 2% until April 2028, supporting businesses and fleet owners in transitioning to EVs, helping to accelerate the shift towards electric vehicles and reducing operational costs. It's also great news for businesses and employees considering an EV salary sacrifice.

Charging infrastructure investment:

With over £200 million allocated in 2025-26 for accelerating EV chargepoint rollout, including on-street chargepoints, the budget seeks to address infrastructure barriers for EV users. Improved charging availability is critical to supporting the uptake of electric vans, especially for businesses operating larger fleets or vehicles with high mileage needs.

Extended Capital Allowances for EV infrastructure:

100% First Year Allowances for EV chargepoints are extended by another year. This means companies investing in charging infrastructure can fully write off those costs in the year of purchase. Whether you’re a fleet operator or a business setting up workplace chargers, this tax relief reduces the overall expense and speeds up the installation of more chargers across the country.

Electric vans get a hand from the Plug-In Grant

For those in the market for electric vans, the government has earmarked £120 million in 2025-26 for the plug-in vehicle grant, specifically to make new electric vans more affordable. This will help small businesses and larger fleet operators manage the switch to electric without breaking the bank, making EVs a better option than sticking with diesel or petrol vans.

Focus on sustainability and clean energy:

The budget allocates increased funds to green energy initiatives that align with the EV industry’s goals. For example, enhanced support for renewable energy sources and sustainable transportation is outlined, positioning EVs as a critical component in the broader agenda for reducing emissions and achieving net-zero goals.

Corporate Tax Cap stability:

The corporate tax rate is capped at 25%, providing stability and predictability for businesses investing in EV fleets or related technology. This is beneficial for companies looking to invest in EVs, as it helps them plan capital expenditures more effectively without the risk of significant tax increases.

Long-term infrastructure strategy:

The government’s also committing to a 10-year infrastructure plan to make sure EV chargers are spread out across the country. This is aimed at getting rid of “range anxiety” and evening out access to chargepoints for both urban and rural drivers, so no one feels like they’re taking a risk by going electric.

The 2024 Autumn Budget brings several practical incentives for EV buyers and businesses, with extended tax breaks, grants, and a commitment to infrastructure. These measures are likely to make EVs more accessible, although the true impact will depend on the effective rollout of charging infrastructure and continued investment to meet growing demand. For now, it’s a step toward making EVs a more practical and financially viable option across the UK.