The Autumn 2025 budget reinforced the Government's support for electric vehicles (EVs) but introduced measures like the Pence Per Mile tax (dubbed eVED, meaning Electric Vehicle Excise Duty) that may concern some drivers. eVED will not take effect until 2028.
If you were driving the UK average mileage each year (around 7,500 miles), eVED would add less than £225 per year to your car running costs. For ICE vehicle owners, fuel duty will gradually increase from September 2026 as the current freeze ends, raising pump prices.
The government is reviewing EV charging costs, presenting a chance to reconsider lowering VAT on public charging and easing standing or capacity charges. The review will be completed before the next Autumn budget in 2026.
Charging at home or using public fast chargers (7-22kW) at around 50p/kWh still means cheaper motoring on the whole than driving petrol or diesel vehicles. Many providers, such as Believ, offer subscription and off-peak tariffs which further reduce charging costs compared to ICE vehicles. Suffolk residents who live near a chargepoint will be able to sign up for this special tariff at Believ - Registration.
What else is happening to benefit EV drivers?
- More Money for EV Discounts:
The government is putting £1.3 billion into the EV grant, and will keep it running until 2030, so buying an electric car stays cheaper.
- Big Boost for Charging Points
£200 million is going into more chargers, including help for workplaces and local councils.
- Charging Costs Under Review
Government will look at ways to make public charging cheaper starting 2026.
- Luxury Tax Threshold Raised
From 2026, you won’t pay extra tax unless your EV costs more than £50,000 (up from £40,000).
- Cheaper for Businesses
EV charging sites won’t pay business rates until 2035, making it easier for companies to install chargers.
- Fuel Prices Frozen for Now
Petrol and diesel tax stays the same until 2026, but then it goes up - making EVs better on price, long-term.
The case for driving electric is getting stronger, and many EV drivers enjoy extra benefits. With almost two million battery electric cars on Britain’s roads already, electric cars can be better for the pocket and better for the planet.
Got questions? Email evcharging@suffolk.gov.uk to ask any questions you may have about switching to an EV.