Autumn Budget Breakdown: Progress, pressure points and what comes next

On pay-per-mile

The government has a strong track record of supporting the UK’s shift to electric vehicles, from strengthening the ZEV mandate framework to investing in innovation. And finding a long-term, sustainable replacement for fuel duty was always going to be a genuine challenge.

However, introducing a pay-per-mile tax now risks slowing progress at a critical stage. The OBR estimates that in 2028-29, the average BEV driver covering 8,500 miles would pay £255. Many drivers and businesses are still weighing the economics of switching, and confidence has been affected by recent policy volatility, including changes to the 2030/2035 phase-out. Adding new running costs too early could make the decision to go electric feel less certain, just as momentum builds.

It’s important that any new system continues to reinforce – not undermine – the UK’s wider decarbonisation objectives and the trajectory set out in the ZEV mandate.

On changes to salary sacrifice and the impact on EV adoption

The Government’s decision to apply National Insurance contributions to salary-sacrificed pension contributions above £2,000 per year from April 2029 is likely to raise concerns among businesses that currently offer – or are considering introducing – salary sacrifice schemes for electric vehicles. These schemes remain one of the most effective ways to help drivers access their first EV and play a critical role in supporting the UK’s transition to cleaner transport.

EV salary sacrifice is also a highly valued workplace benefit. Industry data suggests that around a quarter (27%) of employees say access to an EV salary sacrifice scheme makes them more likely to stay with their employer. Protecting these schemes is essential – they support adoption, help businesses retain talent, and keep the UK’s transition to electric moving forwards.

On the need to invest in EV skills

As the transition to electric vehicles accelerates, there’s a real urgency to ensure the workforce is ready – not just for electric vehicles themselves, but also for the infrastructure that makes them viable. This requires significant investment in EV skills training.

The Government has set an ambitious target of 300,000 public charge points by 2030. At the same time, businesses are increasingly looking to install workplace chargers to meet demand from employees and visitors. Without enough qualified technicians to design, install, and maintain this equipment, these targets risk being delayed, potentially slowing EV adoption and limiting the economic growth this sector could unlock.

Evidence highlights the scale of the challenge: a City & Guilds report found that nearly 65% of employers struggle to find qualified electricians to install EV charge points. This signals that skills are not keeping pace with infrastructure growth, and that urgent investment in training and apprenticeships is needed.

At Drax, we see first-hand how targeted skills development can make a difference. Through our partnership with Kirklees College in West Yorkshire, engineering students are able to gain hands-on experience with real EV charging systems, equipping them with the practical skills needed to enter this fast-growing sector. Scaling initiatives like this across the UK is essential to ensure the workforce is ready and to unlock the jobs, innovation, and economic opportunities the EV transition promises.

On the need for more investment in and management of charging infrastructure

Our FOI research shows that 67% of councils now report full compliance with the Public Charge Point Regulations 2023 (PCPR), up from 47% last year. These regulations are designed to ensure public EV chargers meet minimum standards for accessibility, reliability, payment options, and data sharing, making charging easier and more consistent for drivers. Meanwhile, the proportion of councils reporting complete non-compliance has fallen from 21% to just 6%.

As the next phase of the regulations comes into effect from November 2025, councils will need to make charging even simpler and more reliable for drivers. This includes making it easier to pay at any public charger, sharing data so drivers can find available chargers quickly, and maintaining high reliability and a 24/7 helpline.

Ongoing collaboration between government, councils, and private operators will be crucial to ensure all councils continue working towards full compliance. At the same time, a coordinated national-local strategy is needed to target charge points where they are most needed, helping to avoid gaps in rural and underserved areas and supporting fleets, employees, and everyday drivers alike.

On public charge point VAT

It would have been great to see a move on VAT for public charging in this Budget. For businesses deploying EV fleets, fair energy pricing at public points is essential to keep operations efficient and costs predictable. Equally, for employees and people without access to home chargers, a level playing field makes the EV transition accessible to everyone.

The Autumn Budget highlights just how critical this next phase of the EV transition will be — for drivers, employers, councils and the wider energy system. Policy decisions now must reinforce confidence, not introduce new barriers, particularly as the UK works toward ambitious ZEV mandate targets and charging infrastructure commitments.

We’ll continue working closely with businesses, local authorities and education partners to support the development of reliable charging networks, accessible EV adoption pathways and the skilled workforce needed to deliver them.

If you’d like to discuss how these changes may impact your organisation or your plans for electrification, the Drax Electric Vehicles team is always happy to help.

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