The Government has announced an £18m extension to the Plug-in truck grant until the end of this financial year, cutting the cost of electric lorries by up to £120,000 and helping bring electric and diesel HGVs closer to cost parity.
Responding to the announcement this week Head of Decarbonisation Policy at business group Logistics UK Lamech Solomon said:
“The Plug-in Truck Grant is fundamental to the continued uptake of electric HGVs, and today’s announcement increasing the grant for electric HGVs up to £120,000 per vehicle is a welcome step forward that can help support the business case for industry to invest. However, with long procurement cycles, the sector needs certainty that these new rates will be maintained far beyond March 2026, so it has confidence to plan and invest: our recently published report highlighted that over 60% of industry respondents believed the government had not provided adequate funding to support the decarbonisation of their fleets.
“Commercial and operational viability will always be the main driver for logistics operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure: 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging and more than 80% disagree they can install chargers with sufficient capacity at their operating sites. The logistics sector is committed to decarbonising but needs the government to provide sufficient support to make this transition a realistic possibility for industry.
“These are the factors that need to be considered during the consultation, also announced today, regarding the regulatory roadmap to phase out sales of new, non-zero emission HGVs. The voice of industry must be heard and government should work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on, continue to move smoothly through the UK supply chains.”
Also reacting to the Government announcement, RHA managing director, Richard Smith said:
“This plug-in grant extension is a welcome step that goes some way towards tackling one of the biggest barriers operators face on the road to net zero: upfront vehicle cost.
“Whilst welcome, to create a fully viable zero-emission heavy-duty vehicle market this level of support must be sustained in future years – and applied to HGVs, vans and coaches.”
