What is the UK government doing to support the uptake of green vehicles in 2025?

There’s no denying that the green driving revolution is well underway. From policy to billions in investment, the UK government has dramatically stepped up its support for zero-emission vehicles (ZEVs). But should your organisation be preparing now for a fully electric future?

We’re still on the Road to Zero but the destination is clearer

The Road to Zero has evolved into a broader strategy underpinned by firm legislative targets. Central to this is the Zero Emission Vehicle (ZEV) Mandate, which requires that:

• 28% of new car sales must be zero-emission in 2025
• This figure will rise to 80% by 2030
• A full transition to zero emissions (100%) is expected by 2035

This complements the 2030 phase-out of new petrol and diesel cars – a policy that has survived political debate and is now full installed into long-term decarbonisation plans.

Cash incentives and tax breaks

Financial support remains a key lever for encouraging EV uptake. While some early subsidies have been phased out or adjusted, others have been refined to support both car drivers and van fleet users:

• Company car tax: Electric vehicles benefit from low benefit-in-kind tax rates, just 3% in 2025. This will rise gradually to 9% by 2030, but this is still far lower compared to up to 37% for ICE vehicles.

• Plug-in van grant: Extended through 2025, offering up to £5,000 off large vans and £2,500 for small vans.

Overall, the government’s financial model is shifting from heavy up-front subsidies to longer-term, structured benefits, particularly for fleet operators and company car drivers.

Charging ahead: Infrastructure is no longer a barrier

As of 2025, the UK now has more than 75,000 public charging points at over 38,000 locations, tripling the numbers from 2019. The focus has shifted from “enough chargers” to “smart, well-placed, reliable ones”.

Key developments include:

• OZEV grants for home and workplace chargers (£350) remains available for residents in flats and small businesses – check out the OZEV authorised charger list here: https://www.gov.uk/government/publications/authorised-chargepoint-model-list
• Strategic investment in motorway services and major fuel retailers to ensure reliable, high-speed access for long-distance drivers
• Continued innovation like converting streetlamps into charging stations for drivers without off-street parking

Industry investment and support for manufacturers

To support UK industry through the transition, the government has committed £2 billion* in funding for zero-emission vehicle production and supply chains, with a further £300 million earmarked for consumer incentives.

And with commercial vehicles in mind, regulatory reviews are underway to provide greater operational flexibility for zero-emission vans, covering areas like vehicle testing and drivers’ hours.

These changes reflect a pragmatic approach: reducing barriers while encouraging innovation.

Green driving is no longer optional

Although implementation details vary from one administration to the next, the overall direction of travel hasn’t changed. Whether through net-zero commitments under international agreements, or domestic regulation, the UK’s path to zero emissions is clear… and accelerating.

What does this mean for your organisation?

If your company is aiming to reduce its carbon footprint, the sooner you engage with this transition, the more you’ll benefit. Between favourable tax rates, grant support, and a growing infrastructure, the government is making it easier than ever to go green and Tusker’s salary sacrifice scheme can reduce corporate emissions with minimal effort from the employer.

* https://hansard.parliament.uk/commons/2025-04-07/debates/29D6C671-8A2D-48C7-86BC-95098EFD68B2/ZeroEmissionVehicleMandate