New UK Tax Could Add £300/Year to Electric Car Charging Costs

The UK’s electric vehicle charging industry is sounding the alarm over proposed government tax changes that could dramatically increase costs for drivers and slow the country’s transition to cleaner transportation.

Under consideration by the government, public EV charging operators would pay business rates for the first time on parking spaces adjacent to their charging stations. ChargeUK, the industry’s main trade body, estimates this change would create a staggering £100 million tax burden across approximately 64,000 parking bays that currently operate tax-free.

The timing couldn’t be worse for the struggling EV sector. Electric car sales have already fallen short of expectations, putting financial pressure on charging companies trying to build out the infrastructure needed for Britain’s green transport goals. Industry representatives warn that the new tax burden could force some charging sites to close entirely and discourage further investment in expanding the charging network.

Most concerning for consumers, charging operators say they may have no choice but to pass these costs directly to drivers. Some EV owners could see their annual charging bills increase by up to £300 per year – a significant expense that could deter people from making the switch to electric vehicles.

Environmental advocates worry this policy could undermine the UK’s climate commitments by making electric vehicle ownership less attractive just when the country needs to accelerate adoption. The proposed changes highlight the delicate balance governments must strike between raising revenue and supporting the green technologies essential for meeting net-zero emissions targets.