11:33 25-12-2025

UK pushes EV target review to 2027, adds £650m support and new levy

The United Kingdom’s review of targets to increase the market share of electric vehicles has been pushed back until at least 2027, despite forecasts of faster adoption of cleaner transport. Plans had suggested accelerating the shift sooner, yet carmakers insist that only substantial public funding will make a full transition to electric manufacturing feasible. The delay looks less like a retreat and more like a pause to regroup.

Manufacturers have bristled at a government proposal to raise taxes and introduce a road levy from 2028, arguing the step is premature and would sap momentum in mass EV uptake. Instead, the sector is urging direct financial incentives and investment in charging infrastructure. The debate ultimately circles back to a familiar bottleneck: without robust networks and targeted support, enthusiasm alone won’t carry the market.

Taking those concerns into account, the UK authorities have opted to support electric-technology producers through a package of preferential loans and tax relief worth about £650 million ($790 million). At the same time, a new form of taxation for EV owners will be introduced to offset the loss of revenue from traditional fuel duties paid by petrol and diesel drivers. It’s a balancing act of carrots and sticks—helpful on paper, but one that could blur the signal on costs and timelines for buyers and brands alike.