Rachel Reeves £100m car tax move blasted as | Tech News

Rachel Reeves’ newest £100million car tax plan has been slammed by campaigners, with consultants warning the move may very well be “extremely damaging”. It is understood that the Government is considering introducing business rates for electric car public charging operators for the first time.

But there are fears that plans to introduce business rates to EV charging bays from April 2026 could backfire. Experts at Charge UK have previously warned that the new scheme would add £100M of additional costs to Charge Point Operators. This could ultimately lead to higher prices for customers, with annual bills likely to rise by as much as £300 if charges are directly passed on to drivers.

Speaking exclusively to Express.co.uk, Roy Williamson, chair of GRIDSERVE stressed the move could have negative consequences.

Roy explained: “We are keen about offering great charging for our clients and offering a growth platform for the nation, however prices are already changing into prohibitive, and the additional suggestion that business charges are to be utilized, will probably be extraordinarily damaging to investment and to shoppers.

“If costs keep rising, business cases for expanding the UK’s EV charging networks to meet growing EV needs will soon no longer make sense.”

Electric car owners have faced a pounding over the past year as many of the exemptions and incentives come to a close. Earlier this year, the Chancellor introduced Vehicle Excise Duty (VED) charges on electric vehicles for the first time. 

This is alongside the Expensive Car Supplement (ECS) charge, with many brand new electric car owners were slapped with bills of over £600 per year. A new pay-per-mile road pricing system is also understood to be confirmed shortly, which would see EVs forced to pay 3p per mile on every trip from 2028.

Meanwhile, Sadiq Khan is set to introduce congestion charge fees for electric car owners who will soon face a £1350 per day bill. It means that any changes to business rates and increased charging fees could be another major blow for motorists.

Charge UK added: “This would jeopardise private investment, risk a slowdown in deployment and site closures, particularly outside the Southeast, and push up driver prices.

“Our members estimate prices would need to rise 5 to 10.5p per kWh to compensate for business rates, costing drivers who rely on public charging an extra £315 per year and wiping out the financial benefit of band two of the Government’s Electric Car Grant over five years.”