Britain’s push toward a cleaner, greener transport future is gathering pace, as a fresh wave of government support and private investment promises to accelerate the country’s electrification of commercial vehicles and charging infrastructure. In a move hailed by business leaders and environmental advocates alike, the UK Government announced on August 17, 2025, that its Plug-in Van and Truck Grants will be extended until at least April 2027, providing much-needed certainty for thousands of businesses and fleet operators making the switch to electric vehicles (EVs).
The grants, which currently offer discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks, are designed to ease the financial burden of transitioning to electric fleets. While the exact grant levels for the 2026/27 financial year are yet to be confirmed, the extension is already sparking optimism across industries that rely on commercial vehicles.
“Extending these grants is another decisive step to power Britain’s transition to cleaner transport while backing the industries that keep our economy moving, driving new investment in EVs and helping businesses cut costs and expand,” said Future of Roads Minister Lilian Greenwood, as reported by Fleet World. “Every EV on our roads means healthier communities and new economic opportunities across the country, which is why grants like these are crucial to both accelerating that transition and building a resilient, competitive economy.”
For many businesses, the financial benefits are clear. Industry figures suggest that switching to electric can save more than £2,800 annually on fuel alone. The grants are available to a wide range of operators, from major logistics firms to independent tradespeople, and even individual drivers—putting money back in their pockets and helping them plan for the future with greater confidence.
Major players in the logistics and services sectors have welcomed the renewed government commitment. John Boumphrey, UK country manager at Amazon, emphasized the importance of such support, stating, “We welcome the Government’s continued commitment to supporting the electrification of commercial fleets. Decarbonising the transportation network is a critical step to enable us to achieve our goal to reach net zero carbon emissions across our operations by 2040.”
Jambu Palaniappan, CEO of Checkatrade, echoed these sentiments, noting, “This news is a big boost for tradespeople across the UK. Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence – it all adds up to real, practical support. For many Checkatrade members, with help to switch to electric vans, they can keep moving, win more work and build a future that’s both cost-effective and sustainable.”
Yet, for all the enthusiasm, industry leaders are quick to point out that financial incentives alone aren’t enough. Lamech Soloman, head of decarbonisation policy at Logistics UK, stressed the need for a more comprehensive approach. “Commercial and operational viability will always be the main driver for transport operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure. We regularly hear from our members that depot charging alone will not be enough and that there must be a mix of depot and en route charging to make operations viable.”
Soloman also called for greater clarity and support from the government, urging that freight hubs and depot facilities be prioritized for grid connections. He highlighted the importance of a multi-year settlement for the grants, given that procurement cycles for commercial vehicles often exceed a single year. “Operators need certainty over the long term to plan investments and create confidence required to transition at scale,” he concluded.
The government’s £650 million scheme to make EVs more affordable is only one part of Labour’s Plan for Change. Another key pillar is the rollout of charging infrastructure. A £30 million investment announced in July 2025 will fund the installation of more than 3,000 new charge points at depots nationwide. This is on top of the nearly 85,000 public charge points already in place and the 100,000-plus on the way, thanks to a £381 million Local EV Infrastructure fund.
Meanwhile, the private sector is stepping up to fill critical gaps, particularly in the hospitality and rural sectors. On August 18, 2025, Scottish EV charging installer Connekt secured a multi-million pound investment from Growth Fund 1 to deploy 1,000 new EV charging hubs across the UK over the next four years. These hubs are specifically tailored for commercial uses, such as hotels and the wider hospitality industry, where demand for charging is surging.
Connekt has already demonstrated its capabilities by installing chargers at two hotels in Scotland, including seven 40kW rapid chargers (capable of charging a vehicle up to 80% in two hours), 21 22kW fast chargers, and five 7.5kW chargers for overnight use. CEO and co-founder Johnny Manning credited Scotland’s supportive business environment, citing programs like the Hunter Foundation’s Scale Up Scotland and Scottish EDGE for their role in the company’s growth. “Through these programmes I’ve met exceptional business leaders and fellow founders, sharing the highs and the challenges of scaling—and that support has been invaluable,” Manning said.
The need for expanded charging infrastructure is underscored by Connekt’s research, which found that out of 68,000 potential destination charging locations across Great Britain, fewer than 1% currently have an EV charger installed. The gap is especially pronounced in rural and semi-rural areas, which account for over 79% of these locations. With longer travel distances and higher vehicle utilization outside urban centers, the demand for reliable charging options is only set to grow.
Public charging infrastructure is making strides, too. According to the Department of Transport, public EV charger installations grew by 27% year-on-year. January 2025 saw EVs account for 21.5% of the UK vehicle market—the strongest start to a year on record. The momentum continued into the second quarter, with the UK setting a new record for secondhand EV sales, a sign that more buyers are considering electric from all sources.
The government is also supporting private motorists with the new Electric Car Grant, offering discounts of up to £3,750 on 24 eligible EV models as of mid-August 2025, including new offerings from Cupra, Volkswagen, and Peugeot. This, combined with the expanded network of charge points, is intended to make the transition to electric vehicles more accessible to all.
Kirsty Pendleton, head of business services product and marketing at the AA, summed up the sentiment among many in the industry: “The extension of the existing grant scheme will create confidence for businesses large and small that rely on vans and is vital if the Government is to achieve its ambitious targets for decarbonising transport. We have long campaigned for the removal of barriers to EVs such as cost and access to suitable infrastructure, that could impede progress.”
As commercial transport remains responsible for more than a third of CO2 emissions on UK roads, the combined efforts of government and industry are essential to keeping the country “on track to becoming a clean energy superpower.” With sustained investment, strategic policy, and a growing network of charging options, Britain’s journey toward a zero-emission transport future is looking more achievable than ever.