UK Unveils £1.3B EV Grant Program Amid Looming Per-Mile Tax

The UK government has committed £1.3 billion to subsidize electric vehicle purchases, a strategic MOVE to counterbalance forthcoming road pricing reforms. Grants of up to £3,750 will apply to EVs under £37,000, though critical details on eligibility windows and means testing remain undefined.

Chancellor Rachel Reeves positioned the initiative as essential for maintaining Britain's decarbonization trajectory. "This bridges the gap between today's incentives and tomorrow's infrastructure needs," she stated during the pre-budget announcement. Market analysts note the ambiguity surrounding both the grant parameters and the parallel road tax proposal risks creating near-term consumer hesitation.

The per-mile charging scheme, slated for 2028 implementation, lacks finalized rates or exemptions. This dual approach reflects the Treasury's attempt to reconcile immediate adoption targets with long-term revenue replacement as fuel duty receipts decline.