Tom Middleditch, head of B2B marketing & sustainability spokesperson at Europcar Mobility Group UK, looks at some of the issues still holding businesses back from wider adoption of electric.

It was great to see the Government recognising the financial pressures that are barriers to businesses and private motorists switching to electric, with last week’s announcement on boosted workplace and home charger grants.

The increase in the grants for flat owners, landlords, renters and businesses to £500 per charge point will undoubtedly make a difference. But, with less than four years to go until the ban on the sale of new pure petrol and diesel cars, the pace of change needs a serious injection of urgency. And it’s clear that whilst the mood is definitely changing, with much more positivity around electric, there are still some fairly significant barriers that are holding organisations back.

Our recent EV Barometer for the whole of 2025 found fewer respondents said barriers stood in the way of their employer switching to a more sustainable fleet. One in five (21%) said none of the barriers applied in 2025, compared to 11% in 2024. The investment that’s been made into charging infrastructure has had a positive impact, with 29% of employees saying this was holding back their employer in 2025, compared to 35.5% in 2024.

However, the messages coming from government – central and local – still present businesses with a confusing picture. The removal of the 100% exemption from the congestion charge in London for battery electric vehicles from 2 January 2026 was disappointing.

The proposed introduction of a pay-per-mile charge for electric vehicles – currently in consultation – is another deterrent to EV adoption.

Yet at the start of the year, the Government invested in a national advertising campaign – Get That Electric Feeling – to educate motorists on the benefits of driving electric.

On the one hand, private motorists and businesses are being urged to make the switch to zero tailpipe emissions. On the other, the incentives to make the switch are being rapidly removed although the market is still relatively immature. There seems to be a battle between clean air and revenue – and it feels like clean air is going to be the loser.

The other barrier to adoption is undoubtedly the total cost of ownership. In our recent EV Barometer, cost was cited by 38% of employees as a reason their employers are not making the switch. At Europcar, we have done our bit by introducing price parity for EV rental for business customers. But there are other cost factors that remain sticking points.

Of course, as the technology evolves there is a hope that vehicle prices will align with those of petrol and diesel. But when it comes to charging there is still a disparity between the VAT applied at public chargers and business locations, at 20%, and home charging at 5%.  However, the recent case brought by Charge My Street (CMS) could bring some, if not all, public charging in line with home charging.

This would certainly help many more motorists and businesses to see the long-term benefits of electric motoring. So we will watch this space on whether HMRC appeals against the ruling. With 2030 rapidly approaching, and businesses wanting to do the right thing, it is vital that as many reasons NOT to switch are removed.

As adoption increases, more positive experiences are shared, leading to more drivers being reassured and willing to try zero tailpipe emissions driving.

Indeed, in our experience, when drivers get behind the wheel of an electric car or van, they soon discover many of their initial concerns fall away. And EV rental is playing a critical role in enabling businesses to introduce the new drive train without having to make any long-term commitments.