“All over the place”: haphazard incentive cuts threaten EV confidence

Calls for stable incentives mount as Autumn Budget shifts fleet tax goalposts

Experts are warning against the “haphazard” removal of electric and plug-in hybrid vehicle incentives, following further adjustment to fleet tax breaks as part of the 2025 Budget.
Businesses are critical for the UK’s plug-in hybrid (PHEV) and battery-electric vehicle (BEV) market, accounting for around 80% of registrations across both, according to the latest Department for Transport data. A large share of that volume is bought by leasing companies, which supply them to business fleets. 
However, the Budget stopped short of offering long-awaited support for leasing companies. Businesses purchasing vehicles and charging points outright can deduct up to 100% of the cost from their gross profits, which in turn reduces their corporation tax bill. However, this excludes vehicles that are bought to be leased.
From January 2026, the Treasury will extend this to leased assets, enabling companies to add 40% of the