The UK Department for Transport (DfT) has announced that businesses across the UK will be backed with £1 billion in funding to acquire electric vans and trucks.
The Zero Emissions Truck and Van grants and the Depot Charging Scheme (DCS) aim to tackle two of the biggest barriers to businesses making the switch – upfront costs and access to charging.
To this end, the truck grant will offer savings of up to £81,000 off the heaviest zero emissions trucks, covering up to 40% of the cost.
The van grant will continue to offer discounts of up to £5,000 off the cost of electric vans.
DfT reports that businesses and public authorities could save up to £1m covering up to 70% of the cost, when installing charging infrastructure for vans, coaches, and eHGVs, thanks to a £170m boost to the government’s Depot Charging Scheme.
Many across the industry reacted positively to the news, with UK trade association Logistics UK chief executive, Ben Fletcher, stating: “This is the practical support the industry needs that will move the needle on electric commercial vehicle adoption.
“Our research highlights a growing gap between decarbonisation targets and industry readiness – particularly among smaller operators – driven by factors such as limited charging infrastructure and high cost of electricity.
“By extending the Depot Charging Scheme and confirming significant funding levels through the Zero Emission Truck and Van Grants, the government is simplifying the investment decisions businesses need to take.”
However, the Road Haulage Association (RHA), a UK trade association dedicated to the interests of the road haulage industry, stated that this was a missed opportunity to slash fuel prices.
RHA MD, Richard Smith said: “Today was a missed opportunity from the Chancellor to cut fuel duty and reassure key sectors like ours. In terms of fuel price scrutiny, we’re clear that this must not stop at the forecourt.
“Our essential industry is a key economic enabler. That is why we have been calling for the planned fuel duty rise to be scrapped, along with any link to future inflation rises. Such a rise would be a hammer blow for many firms.”
This comes as many HGV, coach and van operators are now facing fuel prices more than 30% higher than they were just a few weeks ago.
The RHA called on the chancellor, Rachel Reeves for a meeting so that the organisation could explain why fuel duty should be cut, planned changes in September are scrapped – alongside the planned move to link fuel duty to RPI from April 2027 – in addition to introducing an essential fuel duty rebate for commercial vehicle operators.
DfT was also keen to reiterate that alongside support for operators, the government is also helping families make the switch through the Electric Car Grant.
This which has helped over 80,000 drivers buy an EV, by saving them up to £3750 in the process, which should tackle upfront costs which is one of the biggest barriers to EV adoption.
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