The UK’s electric vehicle (EV) charging industry has warned it could be hit with an unexpected £100m bill after the government confirmed plans to make public charger operators pay business rates for the first time.
Industry groups say the proposed change risks stalling investment, leading to charging site closures and potentially adding up to £300 a year to drivers’ electricity costs.
64,000 bays could become taxable
The trade body ChargeUK estimates that as many as 64,000 parking bays next to public chargers will become liable for business rates when the new rules take effect in April 2026. Until now, those bays have been exempt.
According to data from Zapmap, the UK had around 86,000 public chargers by the end of September — an 18% increase since last year — supporting more than one million electric cars on British roads.
Under the proposed change by the Valuation Office Agency (VOA), each charging bay at commercial sites will be treated as a rateable property. This means operators will have to pay taxes for each space they occupy, similar to shop or office owners.
Firms warn of closures and slower rollout
Ian Johnston, chief executive of Osprey Charging, said the new costs could force operators to rethink their expansion plans.
“Large, high-power hubs in parts of the Midlands and the North are already loss-making because we’ve built ahead of demand,” he said. “Adding more taxes could mean closing some sites or delaying investment.”
The VOA has estimated the total cost to the sector at around £25m, but ChargeUK argues the true figure is at least four times higher once all rateable bays and backdated payments are factored in.
Some operators could also face retrospective charges dating back to April 2023, meaning their first bill could exceed £100m for the current financial year.
Calls for government exemption
The previous Conservative government introduced a business rates exemption for charging equipment in 2022, but the rule did not extend to the parking spaces themselves.
ChargeUK is urging ministers to broaden the exemption in the upcoming 26 November Budget, warning that the new costs could undermine the UK’s transition to electric vehicles and damage investor confidence.
“The cost pressures the sector is bearing are already tough,” said Vicky Read, ChargeUK’s chief executive. “These new business rates could be the straw that breaks the camel’s back. We need urgent government action to remove this burden and address high electricity standing charges and unfair VAT rates.”
Government response
A VOA spokesperson said the agency has a legal duty to include all eligible properties in its ratings list.
“If any property meets the criteria in line with legislation, we must assess it and assign it a rateable value,” they said, adding that discussions with charging firms are ongoing.
The Treasury has not yet commented, but industry leaders say failure to act could slow the rollout of vital infrastructure just as Britain pushes to meet its net zero transport goals.
