Burnham's VAT Cut Benefits Driveway Owners Only
Andy Burnham's proposal to reduce VAT on home electric vehicle charging to 0% would provide a £45 annual saving for households with driveways, but critics warn it deepens inequality for those reliant on public chargers. The policy, part of the Labour government's energy bill relief, applies only to domestic electricity used for EV charging, meaning drivers without off-street parking continue to pay 20% VAT at public chargepoints.
Industry Leaders Call for Equal VAT Treatment
John Lewis, CEO of char.gy, described the VAT cut as a "welcome move" for home chargers but stressed the unfairness for public charger users. "Drivers who rely on public charging, often because they don't have a driveway, will still pay 20 per cent VAT for exactly the same electricity," he said. He urged the government to equalise VAT on public charging, noting that "the electricity is the same. The tax treatment should be too."
Fair Transition Concerns Raised
Tanya Sinclair, CEO of Electric Vehicles UK, argued that the home charging VAT cut "entrenches one of the biggest inequalities" in the shift from petrol and diesel vehicles. "Millions of drivers without off-street parking have no choice but to pay 20 per cent VAT when charging in public, while those with a driveway will now pay none at all," she said. She called on the Labour government to address the disparity, warning that a fair transition cannot ask EV drivers to pay different prices for the same electricity based on where they live.
Further Warnings from EVA England
Vicky Edmonds, CEO of EVA England, added that the government must tackle "the significant taxes, levies and electricity costs faced by chargepoint operators" to ensure savings are passed on to drivers. She branded the situation "unfair," stating: "The transition cannot be fair while people pay substantially more simply because they cannot charge at home." The comments highlight growing pressure on policymakers to address infrastructure inequalities as EV adoption accelerates.
