UK businesses are set to benefit from a £1 billion package aimed at accelerating the switch to electric vans and trucks, helping firms cut costs, reduce emissions and shield themselves from volatile fuel prices.
The funding will support companies in overcoming two of the biggest obstacles to electrification: the high upfront cost of vehicles and the lack of charging infrastructure. Through a combination of grants for zero-emission vehicles and investment in depot charging, the government hopes to make electric fleets a more practical option for operators.
Under the scheme, businesses can receive substantial discounts when purchasing electric vehicles. The largest zero-emission trucks will be eligible for reductions of up to £81,000, covering as much as 40% of the purchase price. Smaller commercial vehicles are also included, with grants of up to £5,000 available for electric vans.
Support is also being extended to charging infrastructure. Companies and public sector organisations can access funding of up to £1 million to install chargers for vans, coaches and heavy goods vehicles, with the scheme covering up to 70% of installation costs. This is backed by a £170 million expansion of the government’s Depot Charging Scheme.
Ministers say the investment will not only help cut emissions from road transport but also make businesses less vulnerable to global fuel price fluctuations, which have created ongoing uncertainty for operators.
Aviation, Maritime and Decarbonisation Minister Keir Mather, said: ‘This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices.
‘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 latest funding builds on earlier measures introduced in January, including an £18 million boost to reduce the cost of electric lorries by as much as £120,000. Several major companies, including retailers and manufacturers, have already used the support to begin decarbonising their fleets and lowering running costs.
Wren Kitchens and Bedrooms are a company to have benefitted from the scheme. Their Transport and Logistics Director, Lee Holmes, said: ‘Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty.
‘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.’
Photo: JUICE
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