Government Invests £120M to Support Businesses Transitioning to Electric Vehicles

The UK government has announced a £120 million investment to accelerate the adoption of electric vehicles (EVs) among businesses, logistics providers, and taxi operators. This funding extension is part of a broader strategy to reduce emissions, lower operational costs, and position the UK as a leader in sustainable transportation.

Extended Plug-in Van Grant for Businesses

The Plug-in Van Grant, a key incentive for businesses transitioning to EVs, has been extended for another year. Companies can benefit from financial support when purchasing electric vans, receiving up to:

• £2,500 for small vans (up to 2.5 tonnes)
• £5,000 for large vans (up to 4.25 tonnes)

Since its launch, the scheme has supported the purchase of over 80,000 electric vans, significantly lowering carbon emissions across the commercial sector.

Additionally, businesses will benefit from regulatory changes eliminating additional training requirements for electric van drivers, further reducing transition costs and administrative burdens.

Support for Taxi and Private Hire Fleets

Taxi and private hire operators can continue to access grants of £4,000 per vehicle for the purchase of zero-emission taxis, including London’s iconic black cabs. This initiative enables firms to modernise their fleets while reducing fuel costs and improving air quality in urban areas.

Business-Friendly Application Process

The Plug-in Van and Truck Grant is designed for simplicity. The discount is applied directly at the point of purchase, eliminating the need for separate applications. Manufacturers must ensure their vehicles meet eligibility criteria before businesses can benefit from the grant.

A Strategic Investment for a Greener Future

This funding is part of the UK’s £2.3 billion commitment to EV adoption, supporting businesses in reducing their carbon footprint while maintaining operational efficiency. Future of Roads Minister Lilian Greenwood emphasised the importance of this initiative in making the transition to electric fleets “easier, faster, and more cost-effective” for businesses of all sizes.

By leveraging these incentives, companies can cut fuel and maintenance costs, future-proof their operations, and contribute to the UK’s net-zero goals. With the ban on new petrol and diesel vehicles approaching in 2035, now is the time for businesses to invest in sustainable transportation solutions.

For a full list of eligible vehicles Low-emission vehicles eligible for a plug-in grant: Overview – GOV.UK

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