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The year 2026 is set to be an interesting one with car manufacturers and brands now under pressure to attain even higher zero-emission registrations under the UK’s ZEV Mandate.
While last year (2025) was set at a firm 28%, in 2026 the expectation is that car brands will now have to achieve 33% to keep up with political ambitions. With purported fines of up to £15,000 for failing to meet these conditions, there were concerns from groups like the SMMT that this was creating an unhealthy discounting culture amongst manufacturers.
Indeed, the Chief Executive had suggested that the Government more proactively reconsider the ZEV Mandate to ensure that the discounts were not creating an unsustainable environment.
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Suggesting that new challenges like rising living costs, increasing raw materials and labour expenses plus anti-EV political measures, were harming the ability to make this movement succeed. So an announcement yesterday (Sunday 11 January2026) from officials working with Rachel Reeves was not altogether surprising.
As reported in The Telegraph there are moves being made to help more consumers and businesses move into EVs, further to the potential kickback on the “pay-per-mile” tax scheme. The signs are that the Government are now looking at the issue of VAT on public charging costs, in which those EV drivers pay the standard 20% rate compared to the 5% for those charging at home / domestic property.

There are suggestions that industry experts have recently been pushing the Government to re-consider their intentions to increase costs for EV drivers on the 3 pence per mile charge. There have also been queries on the “pavement tax”, which is essentially a reference to the fact that drivers without off-road parking / charging facilities are being forced to overpay on public charging facilities, especially when you factor the VAT aspect into the calculation.
The underlying charging costs are somewhat essential to your EV experience - even more so when you compare an EV vs petrol / diesel. Taking into account the Alpine A390, with its usable battery of 89kWh, the costs of charging (and the differences) can be noted below:
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As you can quite easily determine, ensuring that you are charging at an appropriate rate is very much essential to your experience. For many drivers with off-road parking, utilising a charge point and overnight supported tariff is allowing for some very cost-effective driving.
In these instances it is simply not comparable to a petrol or diesel option. However, when you do not have the ability to charge at home, due to an absence of a drive or because you live in a flat, you need to rely on the various public resources which offer AC and DC.
Costs are already higher for these charge points but when you add-on the extra 15% in VAT, compared to home charging, you are given an impression that these drivers are being punished for not having access to adequate charging facilities.
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As a result, the article suggests that the Government are now looking into the cost of EV charging and considering the impact of energy prices and wider cost contributors. This could mean addressing the VAT and standing charges for public charging sessions.
Any positive action by the Government will be readily accepted, with any healthy change or amendment for EVs likely to improve public confidence. With exciting performance EVs, like the Alpine A390 launching, the car manufacturers will be grateful as they look to remain sustainable and profitable.
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