The question of whether the UK's 10% discount on electric vehicles will encourage more sales appears uncertain, based on current evidence.
In an attempt to accelerate the transition to electric vehicles (EVs) and reach net zero emissions, the UK government has implemented several policies aimed at promoting EV adoption. However, the success of these efforts pales in comparison to Norway, where 96% of new car sales are electric.
One of the UK's initiatives is a 10% taxpayer-funded discount on new plug-in cars that cost less than £37,000. This subsidy, while well-intentioned, has faced challenges in meeting its intended goals. The UK government plans to invest in approximately 300,000 new EV charging stations by 2030, but this target will not be met due to the promised investment.
EV owners in the UK pay up to ten times more for charging on the road due to the 20% VAT rate on public charging. This high cost is a significant barrier for many potential EV buyers, as a 2024 study of 2,000 car drivers in the UK revealed that 50% claimed cost was their major impediment to buying an EV.
In contrast, retail parks in Norway often have more EV chargers than petrol pumps, leading to higher satisfaction among EV owners compared to owners of combustion-engine vehicles. This is partly due to strategic policies implemented by the Norwegian government, such as ensuring charging stations every 50km along major routes and capping charging costs.
Norway's success in transforming public perceptions of EVs did not stop at price subsidies. The country implemented comprehensive policies since the 1990s aimed at changing perceptions, and this approach has paid off.
The UK government could learn from Norway's example and extend tax cuts for businesses to private buyers, cap public charging costs, and level VAT on charging across the board. Research published in 2025 found that tax incentives that encourage businesses to add EVs to their fleets were extremely effective.
However, the UK's efforts to promote EV adoption have lacked the steady, comprehensive approach that drove Norway's success. Discontinued purchase grants and only partial reinstatement have left potential EV buyers uncertain about the long-term commitment of the UK government to EVs.
The car industry has been lobbying hard for the government to make EVs more affordable, as it will be barred from offering new petrol and diesel cars for sale in the UK after 2030. The best-selling car in the UK, 4.5 years away from the ban on petrol and diesel cars, is the Nissan Qashqai - a model not available in electric.
The UK's public charging network is a mess, according to an EV driver of over 12 years. This lack of infrastructure and high costs are major obstacles to the widespread adoption of EVs in the UK.
The UK is obliged by legislation to accelerate its transition to net zero. To do this, it must learn from the successes and failures of other countries, such as Norway, and implement comprehensive, long-term policies that address the concerns of potential EV buyers and improve the charging infrastructure.
This article was authored by Tom Stacey, Senior Lecturer in Operations and Supply Chain Management, Anglia Ruskin University, and was republished from The Conversation under a Creative Commons license.
