UK Charging Industry Faces Potential £100 Million Business Rates Challenge Amid Sluggish EV Sales
The UK charging sector is bracing for a significant financial hurdle as the government considers implementing business rates on public charging bays for the first time. This development comes at a challenging moment for the industry, already grappling with sluggish electric vehicle sales.
ChargeUK, a leading industry association, has estimated that approximately 64,000 parking bays adjacent to chargers might become liable for these taxes. If the costs are transferred to consumers, it could result in an additional £300 on annual charging expenses for some users, according to the group.
In recent years, the number of public chargers in the UK has grown substantially to accommodate the increasing number of electric vehicles, now exceeding 1 million on British roads. Data from Zap Map reveals that there were 86,000 public chargers by the end of September, marking an 18% rise from 73,000 at the close of 2024.
Business rates are taxes levied on most commercial properties in the UK to support local services. Until now, charging bays have not been included in the list of rateable properties. However, the Valuation Office Agency (VOA) has informed the charging industry that this will change in April, requiring charging companies to pay these taxes for the first time.
Ian Johnston, CEO of Osprey Charging, expressed concerns about the financial impact, indicating that his company might have to shut down some sites and slow down investments due to the added expenses, especially outside of London, where electric vehicle adoption is highest.
“Large, high-power hubs in certain regions of the Midlands and north [of England] are more likely to be loss-making because we have built ahead of EV uptake,” Johnston remarked.
ChargeUK has challenged the VOA’s estimate of a £25 million cost for the sector, arguing that it underestimates the number of rateable bays and average rents. Additionally, there is concern that the bill could be backdated to 1 April 2023, potentially doubling the anticipated £100 million cost for the current financial year.
In 2022, the Conservative government exempted charging equipment from business rates, but the parking bays were not included. The VOA noted that individual bays in larger charging sites and standalone EV charging locations might be added to ratings lists because operators typically have exclusive use of the spaces.
ChargeUK contends that, to support the government’s goal of promoting electric vehicle usage and reducing carbon emissions, these bays should also be exempt. The Treasury would need to address this in the budget on 26 November.
Vicky Read, ChargeUK’s chief executive, stated, “The cost pressures the sector is bearing are tough, with business rates threatening to be the straw that breaks the camel’s back. We need government intervention to remove this unexpected burden, alongside action to address sky high standing charges [on electricity] and inequitable VAT.”
A VOA spokesperson acknowledged the situation, saying, “We have a statutory duty to maintain non-domestic rating lists. If any property meets criteria in line with legislation and rating law, we must assess it and assign it a rateable value.” The Treasury has yet to provide a comment on the matter.
Original Story at www.theguardian.com