Committee publication · Correspondence · 11 December 2025 · HC 1593
Letter to the Chancellor of the Exchequer relating to electric vehicles and business rates, dated 19 November 2025
From: Transport Committee
Inquiry: Supercharging the EV transition
Summary
The Transport Committee Chair writes to the Chancellor expressing concern about the Valuation Office Agency's proposal to apply business rates to EV charging bays from 2026. The committee argues this risks undermining EV uptake and charging infrastructure rollout by increasing costs to drivers and operators at a critical stage of the UK's net zero transition.
Key findings
- VOA proposes applying business rates to EV charging bays from 2026, currently an independent valuation process
- ChargeUK research suggests worst-case scenario would cost drivers an extra £315 annually, eliminating the entire value of the band 2 Electric Car Grant over five years
- The sector already faces high energy and installation costs; additional business rates could slow infrastructure progress
- Uneven regional progress on EV charging rollout makes affordability and investment stability particularly important
- The committee requests Treasury assessment of the proposal's impact on EV take-up, infrastructure availability, and future investment
Tone
CriticalTopics
electric-vehiclesbusiness-ratesnet-zerotransport-infrastructure
Key actors
Ruth Cadbury MP, Transport Committee, Rachel Reeves, Valuation Office Agency, ChargeUK, Heidi Alexander MP
Notable line
“… application of business rates would mean drivers spending an extra £315 a year on charging; this would wipe out the entire value of the band 2 Electric Car Grant over five years.”
Key Quotes
“The sector is already burdened by high energy and installation costs, and additional charges risk slowing progress at a crucial stage in the UK's transition to electric vehicles.”
“This is essential to meeting the Government's legally binding net zero obligations.”
Source · parliament.uk record ↗