Almost half of UK drivers (45%) say electric vehicle (EV) taxation has influenced their decision to go electric, according to research from Close Brothers Motor Finance.
Ahead of the Autumn Statement, the research highlights support measures that will be needed if the UK is to encourage drivers to switch to electric vehicles. The survey comes after the UK government’s changes to Vehicle Excise Duty (VED) and the Expensive Car Supplement, which came into effect on 1 April 2025. Most EVs are no longer fully exempt from road tax. Standard rates now apply, including a £10 first-year fee and £195 annually from the second year. EVs priced over £40,000 also face the Expensive Car Supplement of £425 per year for the first five years, bringing the total annual cost to £620.
The research found that one in five drivers (22%) now say they no longer plan to purchase a new EV, while 24% are considering buying a used electric vehicle instead.
The findings suggest that recent policy shifts - aimed at closing the tax gap between EVs and petrol or diesel vehicles - may be slowing consumer momentum in the UK’s electric car market.
John Cassidy, Managing Director of Sales at Close Brothers Motor Finance, comments: "Ahead of the Autumn Statement, these findings show that while drivers are keen to switch to electric vehicles, recent tax changes are creating uncertainty and slowing adoption.
“Despite schemes such as the Electric Vehicle Grant, which will go some way to tempting new buyers to take the leap, the upfront costs of new cars remain too high for many motorists, and the list of qualifying vehicles for the top bracket is short.
“If the UK is to meet its net-zero targets, it’s clear that additional support measures - whether through incentives, infrastructure, or targeted guidance - will be crucial to keep EVs within reach for everyday drivers.”
