Electric Vehicles and UK Destination Charging: What the Autumn Budget Confirms

Now the dust has started to settle after the Autumn Budget 2025, two clear headlines have emerged for electric vehicle drivers and organisations that host charging infrastructure: EVs are moving into the mainstream of road taxation, and investment is still flowing into the systems that keep them running.

The new road-use charge explained in real terms

The headline change is the introduction of a nationwide pay-per-mile road-use levy for electric vehicles starting April 2028, priced at 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids.

To put that into practical numbers, the RAC calculates that an average UK EV driver covers roughly 8,000–10,000 miles per year. At 8,500 miles annually, drivers will pay about £255 per year extra under the new levy (8,000 miles would equate to £240, 10,000 miles to £300).

This isn’t an additional charge layered onto fuel duty; instead, it replaces the contribution EV drivers don’t make at the pump. As EV ownership grows, HM Treasury anticipates fuel duty receipts will continue to fall, which is why the system is shifting to a usage model — so all road users contribute more evenly over the long term.

Infrastructure funding remains strong

Alongside the tax shift, the budget confirmed major funding for chargers:

• £200 million for the continued rollout of charging infrastructure, supporting more public, workplace, and community-based charging points.

• £1.3 billion in extended support for the Plug-in Vehicle Grant, helping drivers and businesses with upfront costs for new electric cars.

Government and industry groups have widely interpreted this to mean charger deployment will continue to accelerate. The UK is already adding thousands of new public connectors each year, with Zapmap reporting over 70,000 public charging connectors live in the UK by late 2025, showing the direction of travel well before the new mileage levy activates.

What this means for destinations that host charging

For organisations that own or manage destination charging infrastructure, including hotels, venues, parking sites, holiday parks, and workplace hubs, the rollout funding arrives at a time when adoption is growing quickly:

• Society of Motor Manufacturers and Traders (SMMT) data shows that more than 1 in 5 new cars registered in the UK in 2025 has a plug, signalling that electric and hybrid purchases are no longer niche.

• The Department for Transport (DfT), United Kingdom's 2030 zero-emission car target remains in place, meaning the number of EV drivers planning long journeys, business trips, and holidays is set to rise sharply over the next 4–5 years.

For hotels in particular, the case for chargers is tied to consumer behaviour. Research from Booking.com’s 2024 Sustainable Travel Report found that 56% of UK travellers want easier access to EV charging where they stay, showing a real expectation shift in the hospitality sector.

Things every group should keep on their radar

If you drive an EV:

• Use your own annual mileage as a baseline to estimate future costs. The RAC average (8k–10k) gives a guide, but personal mileage is the key figure.

• Remember that servicing costs for EVs are typically lower due to fewer moving parts, and electricity costs per mile remain cheaper than petrol or diesel for most drivers, even once the 3p-per-mile levy begins in 2028.

If you host destination chargers:

• Consider utilisation rates, dwell time, and location. Choosing the right charging solution at destinations matters because drivers stop for 20–40 minutes to eat or rest and of course longer to sleep, meet, or relax. This ‘pause’ behaviour is exactly what makes venues part of the charging ecosystem.

• Infrastructure investment increases the likelihood of improved grid access, wider public charging coverage, and greater reliability for people travelling without home charging.

If you own or plan to install charging infrastructure in hospitality or workplaces:

• Grants support vehicle purchases more than charge installs, but the £200m infrastructure rollout fund signals political backing for expansion.

• Commercial destinations supporting business drivers, employees or guests should track policy updates around charger planning permissions, grid capacity support, and emerging local incentives that typically follow national funding commitments like these.

A market maturing fast

With 70k+ public connectors already live by late 2025 and 20%+ of new UK car registrations now plug-in vehicles, the foundations are being laid well before the 2028 tax shift takes effect.

The 2025 budget marks a transition from cost-free road-tax EV driving to a shared, predictable contribution model. At the same time, it maintains meaningful support for charger proliferation and EV purchases, reflecting a UK transport landscape that’s expanding, planning for demand, and spreading responsibility across all drivers.