Budget 2026: Electric car drivers backed by £100m to cut charging costs as Labour pledges further action

Electric car drivers backed by £100m to cut charging costs as Labour pledges further action Labour recently announced that it would be cutting red tape on installing EV chargers at home Sign up to the Cars Newsletter I agree to receive updates and information about my account, the GB News Community, and related products and services from GB News. Email address Sign up By signing up you agree to the Terms and Conditions and Privacy Policy and Community Rules.

Thank you for signing up! See the latest from GB News here . Choose GB News on Google - add us as a preferred source Choose GB News Support GB News Champion free speech and independent journalism while unlocking exclusive benefits. Support us The Budget has provided a boost for electric car owners following the release of a groundbreaking report into charging costs, and the confirmation of £100million in investment. While it was not mentioned in the Budget speech itself, the Department for Transport has announced a £100million fund over the next two years to reduce costs for local, lower-powered public chargers.

This follows the publication of the Government's Cost of Charging review, which acknowledged the gap in costs for home and public charging. When charging in public, drivers are faced with a 20 per cent VAT rate, compared to zero when charging at home, after intervention by the Government at the start of October. TRENDING Stories Videos Your Say Chancellor John Healey announced the removal of VAT from household electricity bills, which he extended today until July 2027.

Estimates suggested that this would help the average household save £45 a year, further delivering savings for electric car owners. In addition to this, the Government said it would take immediate steps to "establish a taskforce to explore allowing drivers to use their domestic electricity tariff at local, lower-powered public charge points". Labour acknowledged that this would be a "complex proposal", prompting a £100million investment over the next two years to reduce costs at lower-powered public chargers.

This will come into effect from Spring 2027, and is expected to save the average non-home-charging EV driver who uses on-street chargers around £150 per year. Budget documents stated that the Department for Transport will set out next steps in due course. The Cost of Charging review, written by Philip New, called for time-limited financial support to reduce charging prices for drivers. It also demanded that the Government "address the tension between the UK Government’s EV priorities and the electricity network charging and policy levy regimes in Great Britain".

LATEST DEVELOPMENTS Labour approves new driving law changes impacting petrol, diesel and electric cars next year UK dri vers can save £3,750 on new electric cars from Mini, Ford, BMW and more - full list Driving law changes confirmed by Labour to save British motorists £300 a year The managing director of Renault UK previously told GB News that the Government should consider cutting VAT on public EV chargers | GETTY Around 40 per cent of drivers across the UK do not have access to off-street parking, forcing them to rely on public charging if they have an EV.

Speaking previously to GB News, Adam Wood, managing director of Renault UK, acknowledged that the Government faced a "delicate balancing act" when considering VAT changes . He added: "What's clear is, if we're to succeed in convincing more and more people to go electric, then those without access to home charging are dependent on the public network; they need a solution for lower-cost charging. "In those difficult choices, a clear differential between home and public charging is now 20 per cent.

That's something that the Government should consider when looking at cost." Drivers can save up to £300 following the removal of red tape and planning permission | KERBO CHARGE The Government recently announced that it would be removing red tape for drivers looking to install a charger using a cross-pavement solution. Referencing the move in the Budget, Chancellor John Healey reaffirmed that drivers could save up to £300 when installing EV chargers at home.

Motorists will no longer be required to apply for planning permission to install cross-pavement chargers. Savings include up to £300 in installation costs, while also allowing drivers to use EV-friendly tariffs, meaning they can charge for as little as 2p per mile. Our Standards: The GB News Editorial Charter Cars John Healey pledges to introduce sweeping VAT changes for taxi firms Cars New HMRC rates to impact millions of UK drivers after Budget announcement Cars Fuel duty extension confirmed by Labour in lifeline to millions of petrol and diesel drivers Cars Labour approves new driving law changes impacting petrol, diesel and electric cars next year Cars UK drivers can save £3,750 on new electric cars from Mini, Ford, BMW and more - full list of eligible EVs Cars Driving law changes confirmed by Labour to save British motorists £300 a year Cars Labour set to freeze fuel duty in Budget as petrol and diesel drivers secure victory Cars Petrol and diesel prices remain high amid dire warning - 'Consequences spread throughout the economy' Cars Citroen 2CV revival prompts surge in interest for French car brand after 'fantastic reaction' Cars Audi boss slammed for appearing alongside Donald Trump after confirming $4bn US investment Cars Oxford Street bans vehicle traffic as Sadiq Khan praises 'truly momentous' day for London Exclusive Cars Renault boss calls on Labour to slash VAT on public chargers to help drivers make EV switch Cars Major car brands recall 300,000 vehicles due to urgent fire and crash warnings - Hyundai, Toyota and more Cars Labour considers weakening electric car targets as experts slam proposals - 'Profoundly disappointing' Cars Drivers forced off roads as bright headlights cause havoc for millions of Britons Cars Volvo to slash 2,500 jobs amid intense pressure from Chinese brands and Trump's auto tariffs Cars London seeks to ban new petrol and diesel private hire vehicles from 2030 under new plans Cars UK councils spend £42million slashing speed limits to just 20mph Cars Labour commits £220million to address 'national embarrassment' and fix roads Cars DVLA unveils new car tax and driving licence updates impacting millions of motorists Cars Labour 'risks giving with one hand and taking away with the other' amid new electric car rules Cars Ford Cortina ranked as UK's most-wanted revival as drivers demand return of classic cars Cars UK homeowners set to save £300 as Labour removes red tape on electric car chargers Cars Driving law changes to ban common practice impacting thousands of cars across the UK Cars Drivers to benefit from parking law changes - New 10-minute rule, £100 cap on fines and more Cars UK businesses demand urgent fuel duty cut and diesel rebate scheme in upcoming Budget Cars Digital driving licence nearing nationwide rollout for millions of UK drivers - 'Significant moment' Cars Parking law changes confirmed by Labour in major victory for millions of UK drivers Cars DVLA announces new update today that could impact vehicle owners across Britain Cars Smart motorways could be 'even more deadly' as speed cameras suffer from 'anomalies'