Pressure is mounting on the Government to abolish the so-called EV ‘Pavement Tax’ to increase EV affordability, adoption and investment in UK.

FairCharge says the Treasury should equalise the VAT rates for public (20%) and home (5%) EV charging

Campaign group FairCharge has renewed its calls to the Treasury to equalise the VAT rates for public (20%) and home (5%) EV charging so that those unable to charge at home are not unfairly disadvantaged.

Data indicates that, on average, 38% of UK households can’t charge at home. But new figures from FairCharge show that this reaches 90% in areas of London and Glasgow, 80% in parts of Portsmouth and Edinburgh, and 75% in parts of Birmingham.

The analysis also reveals that Coventry has the most public chargers per household solely reliant on the public network, closely followed by Westminster and Kensington in London, Birmingham Yardley and Milton Keynes North.

In contrast, Birmingham Ladywood; Harrow East; Luton North; and Rhondda are lagging behind and home to the least public chargers per household without home charging.

Quentin Willson, founder of the FairCharge campaign, said: “The Chancellor should use the Spring Statement to make a generational commitment to the future of UK electrification to create investment confidence for the industry, increase energy security, and help clean up our urban air. Cutting VAT on public charging is essential. The Treasury is disadvantaging drivers by forcing them to pay four times the rate of VAT simply because they don’t have a driveway. These higher costs are also slowing EV adoption.”

The call to even up VAT on charging is part of FairCharge’s six-point action plan to keep the UK’s electric car revolution on track and to ensure all drivers are able to access an EV.

The plan also urges the Government to implement the ZEV mandate and introduce support schemes for low-income drivers to access EVs, mirroring similar initiatives in Europe and the US.

Other measures include decoupling the wholesale price of electricity from gas for lower energy costs for all, as set out by FairCharge and the RAC earlier this month.

Willson added: “Since the Government grandly announced the halt of new combustion car and van sales in 2030 it feels like it’s rammed on the handbrake. UK EV manufacturing industrial strategy has all but disappeared, car makers are moving EV production abroad, subsidies have gone – along with hopes of a British battery factory. Last week the White House – political centre of the land of V8 engine – announced a $27.5bn package to support EVs, charging infrastructure, battery manufacturer and the supply of critical minerals. In the UK we can’t even offer £500 for a home charger.

“If the Government doesn’t take urgent action, we will lose the opportunity for tens of billions in economic activity and tens of thousands of new highly paid, highly skilled jobs.”

FairCharge’s six-point action plan for Spring Statement

1. Axe the Pavement Tax: equalising the VAT rates for public (20%) and home (5%) EV charging so that those unable to charge at home are not unfairly disadvantaged.
2. Finalise and publish a strong ZEV mandate: to provide investment confidence to build EVs and infrastructure in the UK and support UK manufacturers.
3. Deliver charge point funding, guidance and standards to advance the roll-out of charging infrastructure at the local level.
4. Support schemes for low-income drivers to access EVs, mirroring similar initiatives in Europe and the US.
5. Decoupe the wholesale price of electricity from gas for lower energy costs for all.
6. Increase the provision of EV charging signage to tackle charging anxiety and provide confidence to current and future EV drivers.