Government pledges £1 billion to help businesses switch to electric trucks and vans

The government has unveiled a £1 billion package to support British businesses in adopting electric vans and trucks, with grants designed to tackle the high upfront costs of zero emission vehicles and expand charging infrastructure at commercial depots.

Under the Zero Emissions Truck and Van grants announced on 25 March, businesses will be able to save up to £81,000 off the heaviest zero emission trucks — covering up to 40 per cent of the purchase price — while the van grant will continue to offer discounts of up to £5,000 on new electric vans. The measures are aimed at reducing operators' exposure to volatile global fuel prices while cutting emissions from road transport.

A separate £170 million boost to the government's Depot Charging Scheme will allow businesses and public authorities to claim up to £1 million towards installing charging infrastructure for vans, coaches and electric heavy goods vehicles, covering up to 70 per cent of installation costs. The scheme targets one of the most commonly cited barriers to fleet electrification: the lack of accessible, affordable charging at commercial premises.

Aviation, Maritime and Decarbonisation Minister Keir Mather said the investment would cut costs for businesses, support jobs and clean up the country's roads. "The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs," he said. "We're helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country."

Industry backing

Several major companies have already taken advantage of earlier government funding to begin electrifying their fleets. Lee Holmes, Transport and Logistics Director at Wren Kitchens and Bedrooms, said the investment gave businesses "the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty." The company has introduced 44-tonne electric trucks into its fleet alongside rapid charging infrastructure.

Julian Bailey, Head of Group Transport at Marks & Spencer, welcomed the announcement, noting the retailer had already onboarded 24 battery electric vehicles across its transport fleet as part of its ambition to become a net zero business by 2040. "We welcome this investment which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation," he said.

The announcement follows an £18 million uplift in January that offered savings of up to £120,000 off the cost of green lorries. Toby Poston, Chief Executive of the British Vehicle Rental and Leasing Association, described the Depot Charging Scheme as playing "a vital role" in helping fleet operators install affordable, reliable charging, adding that additional support would encourage more rental operators — particularly small and medium-sized enterprises — to electrify at scale.

Alongside commercial measures, the government highlighted its support for private motorists through the Electric Car Grant, which has helped more than 80,000 drivers purchase an electric vehicle with savings of up to £3,750. With one in four cars now sold being electric, the government is spending over £600 million to roll out hundreds of thousands of EV chargers across the country, building on the 118,000 already available.