UK commits £1 billion to accelerate electric commercial vehicle rollout
The UK government in London says the new funding package is intended to lower costs for businesses, stimulate economic growth and support the decarbonisation of road transport. Beyond the environmental benefits, battery-electric commercial vehicles are expected to reduce operating costs and energy consumption over time, making fleet operators less exposed to global price volatility.
The funding is channelled into two programmes targeting the key hurdles to electrification: high upfront investment and insufficient charging infrastructure. Under the Zero Emissions Truck and Van scheme, the government will cover up to 40 per cent of the purchase price for electric trucks, with grants of up to £81,000 per vehicle for the largest models. Subsidies for electric vans are lower, reaching up to £5,000 per unit.
The new funding builds on a £18 million increase in the budget for electric truck purchase incentives announced in January, which had been due to run until the end of March 2026. However, support rates have been adjusted: the Department for Transport now caps grants at £81,000 per vehicle. Under the previous scheme, trucks over 26 tonnes were eligible for subsidies of up to £120,000.
At the same time, the government is significantly expanding support for charging infrastructure. The budget for the “Depot Charging Scheme” is being increased by £170 million. The programme allows businesses and public sector organisations to cover up to 70 per cent of the costs for installing depot-based charging infrastructure for vans, coaches and electric trucks, with funding capped at £1 million per application.
“This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices,” said Keir Mather, Minister for Aviation, Maritime, and Decarbonisation. “The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”
The announcement also includes statements from representatives of two companies that stand to benefit from the funding.
“Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty,” said Lee Holmes, Transport and Logistics Director at Wren Kitchens and Bedrooms. “With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility.”
Julian Bailey, Head of Group Transport at the supermarket chain M&S, added: “In 2021, we set ourselves the ambitious target of becoming a net zero business across our value chain by 2040. Since then, we’ve made some great progress, which includes the onboarding of 24 battery electric vehicles across our transport fleet. We welcome this investment, which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation.”
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