The Chancellor has been accused of “throwing good money after bad” after new analysis revealed the Government is spending more than £13 protecting petrol and diesel drivers for every £1 allocated to making public electric vehicle charging cheaper.
Research by New AutoMotive found that extending fuel duty relief will cost taxpayers £1.35 billion over two years, compared with £100 million committed to reducing the cost of local public EV charging.
The Budget extends the 5p-per-litre fuel duty cut until July 2027, while leaving VAT on public EV charging at 20%.
Tanya Sinclair, CEO of Electric Vehicles UK, said: “The Chancellor is throwing good money after bad. Instead of investing in a future where drivers are less exposed to volatile oil prices, he’s spending billions cushioning the cost of staying dependent on them.”
Ginny Buckley, chief executive of Electrifying.com, said: “Imagine paying more tax on electricity simply because you don’t have a driveway. That’s effectively what millions of EV drivers are being asked to accept.
“The Prime Minister talks a lot about fairness, but it’s hard to see the fairness in that.
“We should be making electric cars an easy choice for ordinary families. Instead, we’ve got a confusing patchwork of promises, with the biggest savings still reserved for people who can plug in at home.”
Oliver Brighton, CFO of charging company char.gy, said: “If you have a driveway, your electricity attracts 0% VAT for now. If you don’t, you’re charged 20% at a public charger. It’s the same electricity powering the same type of car. Why should where you park determine how much tax you pay?”
The Government’s £100 million charging package could save eligible motorists around £150 annually from spring 2027.
However, with mileage-based EV taxation planned from April 2028, industry leaders warn that rising costs could discourage families from switching to electric.
