Getting to Zero
The race to end our reliance on petrol and diesel motors is accelerating. In just four years, electric vehicles’ share of new cars bought in the UK has shot up from 1.7% in 2019 to 16.5% in 2023. But there is still a long way to go to meet the target of eight in ten new cars sold at the end of the decade being electric, alongside a complete ban on new petrol and diesel cars.
There are reasons for optimism. New EV sales continue to grow at a double-digit rate, and polling conducted for Onward shows that more drivers are eager to make the switch.
Although EVs only account for 3% of all cars on the road, more than one-third of drivers planning to buy a new car in the next year say they intend to go electric. Among all those considering a new car purchase over the next few years, less than half expect it to be petrol or diesel. Our polling also shows that EV drivers are overwhelmingly satisfied with their choice, with fewer than one in ten dissatisfied with vehicle range or their charging experience.
But there are still roadblocks ahead. The Society of Motor Manufacturers and Traders (SMMT) recently downgraded its forecast for new EVs’ 2024 market share to 18.5%. This is well below the 22% sale target in the UK’s Zero Emission Vehicle (ZEV) mandate that will ramp up to deliver an entirely electric new car market by 2035.
Onward’s polling reveals that many drivers are still hesitant about EVs. More people associate safety, reliability and good driving experience with petrol and diesel cars than electric cars. A majority of non-EV drivers also worry about the upfront cost, finding a charging point, and making long journeys if they switch.
The UK will need to overcome two speed bumps to meet its EV targets: vehicles remain costly, especially ones with ranges that rival petrol and diesel cars, while difficulties charging put drivers off and add to range anxiety.
1. Create the market conditions to drive the expansion of affordable, efficient EVs, while remaining cognisant of economic security.
1.1 Monitor the quality of ZEV mandate eligible cars being registered and consider using the mid-point 2026/27 review to incentivise more efficient vehicles.
1.2 Steadily increase EV Benefit in Kind rates between the 2027/28 and 2035/36 tax years so EV taxation remains preferential to petrol, diesel and hybrid cars.
1.3 Mobilise UK public financial institutions to support the commercialisation of new battery technologies to reduce production costs without compromising range.
1.4 Implement standardised battery health testing to be conducted during MOTs to increase drivers’ confidence to purchase used EVs.
1.5 Coordinate with the EU on Chinese EV tariff policy. If that results in imposing tariffs, review the impact on the UK EV market and if a notable negative effect is identified, consider introducing a social leasing scheme when public finances allow.
1.6 Restrict the use of Chinese cars by politicians and at critical national infrastructure sites, and monitor broader security concerns.
2. Reduce EV repair and maintenance costs by introducing an “EV Repair Training Grant” to expand the trained workforce.
3. Expand the provision of cheaper, flexible home charging to more households.
3.1 Introduce an interest free “EV Charging Gully Loan” and allow gullies to be installed as generally permitted developments.
3.2 Introduce an interest free “Charging Host Loan” for households with off-street parking to install private chargers and provide peer-to-peer charging.
3.3 Introduce ‘right to charge’ rules so freeholders and landlords are obliged to allow leaseholders and renters to install charging points.
3.4 Accelerate smart meter rollout so all drivers will be able to benefit from smart EV charging tariffs and ensure energy suppliers continue to provide smart tariffs during any future price spikes.
3.5 Update smart charging regulations to require private charging point providers to offer bi-directional chargers to households.
4) Increase the availability and reduce the cost of local public charging.
4.1 Continue to provide capability funding to local authorities beyond the current life of the Local Electric Vehicle Infrastructure (LEVI) fund and devolve funds to mayoral combined authorities.
4.2 Offer utilisation linked finance through UKIB for local authorities to add public chargers in areas with low availability and seasonal demand.
4.3 Reduce planning barriers to accelerate the installation of chargers by providing street works permits to charge point operators and expanding permitted development rights.
4.4 Reduce VAT on non-rapid public charging to be in line with private charging.
4.5 Provide cheaper parking and discounted charging options at public charge points.
5) Accelerate the installation of rapid chargers at service stations and the development of rapid charging hubs.
5.1 Separate the Rapid Charging Funding into multiple tranches and swiftly release the first tranche to motorway service stations to kickstart rapid charging installations.
5.2 Provide permitted development rights for distribution network operators to reinforce existing power lines to accelerate connections for motorway service stations and rapid charging hubs.
5.3 Update signage regulations to allow service stations to add EV charging symbols and accelerate granting permission for rapid charging hub signs.
1. Create the market conditions to drive the expansion of affordable, efficient EVs, while remaining cognisant of economic security.
1.1 Monitor the quality of ZEV mandate eligible cars being registered and consider using the mid-point 2026/27 review to incentivise more efficient vehicles.
1.2 Steadily increase EV Benefit in Kind rates between the 2027/28 and 2035/36 tax years so EV taxation remains preferential to petrol, diesel and hybrid cars.
1.3 Mobilise UK public financial institutions to support the commercialisation of new battery technologies to reduce production costs without compromising range.
1.4 Implement standardised battery health testing to be conducted during MOTs to increase drivers’ confidence to purchase used EVs.
1.5 Coordinate with the EU on Chinese EV tariff policy. If that results in imposing tariffs, review the impact on the UK EV market and if a notable negative effect is identified, consider introducing a social leasing scheme when public finances allow.
1.6 Restrict the use of Chinese cars by politicians and at critical national infrastructure sites, and monitor broader security concerns.
2. Reduce EV repair and maintenance costs by introducing an “EV Repair Training Grant” to expand the trained workforce.
3. Expand the provision of cheaper, flexible home charging to more households.
3.1 Introduce an interest free “EV Charging Gully Loan” and allow gullies to be installed as generally permitted developments.
3.2 Introduce an interest free “Charging Host Loan” for households with off-street parking to install private chargers and provide peer-to-peer charging.
3.3 Introduce ‘right to charge’ rules so freeholders and landlords are obliged to allow leaseholders and renters to install charging points.
3.4 Accelerate smart meter rollout so all drivers will be able to benefit from smart EV charging tariffs and ensure energy suppliers continue to provide smart tariffs during any future price spikes.
3.5 Update smart charging regulations to require private charging point providers to offer bi-directional chargers to households.
4) Increase the availability and reduce the cost of local public charging.
4.1 Continue to provide capability funding to local authorities beyond the current life of the Local Electric Vehicle Infrastructure (LEVI) fund and devolve funds to mayoral combined authorities.
4.2 Offer utilisation linked finance through UKIB for local authorities to add public chargers in areas with low availability and seasonal demand.
4.3 Reduce planning barriers to accelerate the installation of chargers by providing street works permits to charge point operators and expanding permitted development rights.
4.4 Reduce VAT on non-rapid public charging to be in line with private charging.
4.5 Provide cheaper parking and discounted charging options at public charge points.
5) Accelerate the installation of rapid chargers at service stations and the development of rapid charging hubs.
5.1 Separate the Rapid Charging Funding into multiple tranches and swiftly release the first tranche to motorway service stations to kickstart rapid charging installations.
5.2 Provide permitted development rights for distribution network operators to reinforce existing power lines to accelerate connections for motorway service stations and rapid charging hubs.
5.3 Update signage regulations to allow service stations to add EV charging symbols and accelerate granting permission for rapid charging hub signs.
Ned Hammond, Head of Energy & Environment at Onward, commented: “More and more motorists are ready to switch to electric vehicles. But most drivers who are yet to switch are put off by range anxiety, charging worries, and the upfront cost.
“If the UK is going to meet its net zero goals and improve energy security, we need more policies to help drivers go green. That doesn’t mean forcing or taxing motorists into EVs but making switching easier while the market develops better and cheaper electric cars.
“Simple things like slashing unfair VAT costs on public charging, a right to charge for tenants and leaseholders, reducing planning barriers to charger installations, and adding battery health tests to MOTs could cut running costs, boost charging availability, and raise confidence in EVs for second-hand car buyers.”
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