Autumn Budget 2026: what EV drivers should watch

A practical look at the taxes, public charging costs, grants and infrastructure EV drivers should watch ahead of the Autumn Budget.

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The UK Budget will take place on 28 October 2026. For EV drivers, the useful question is not simply what will be announced, but which announcements could actually change the cost of owning, driving or charging an electric car. 

There is already quite a lot happening around EV taxation, grants and public charging, which makes it easy for existing policies to get mixed up with new ones. 

So, ahead of the Autumn Budget, here are the areas worth keeping an eye on, what already applies today, and what would genuinely count as a change.

Autumn blog graphic

Why does the Autumn Budget matter to EV drivers?

The Budget is where the government sets out decisions on taxation and public spending. That means changes announced there can affect motorists in several ways, from vehicle taxes and EV incentives to funding for charging infrastructure. 

For EV drivers in particular, 2026 comes with an added layer of interest. Electric cars are already part of the Vehicle Excise Duty system, a new mileage-based tax has been confirmed for 2028, and the government is currently reviewing the cost of public EV charging. 

Not everything discussed around Budget time will therefore be new. 

Here are four things worth watching:

1. Electric car tax 

EV drivers already pay Vehicle Excise Duty, or VED.

Electric, zero and low-emission cars moved into the VED system in April 2025. For 2026/27, an electric car registered on or after 1 April 2025 pays £10 in its first year and the standard £200 annual rate after that. Different rates can apply depending on when the vehicle was registered.

There is also another change already on the horizon.

From 1 April 2028, the government plans to introduce Electric Vehicle Excise Duty, or eVED, as a mileage-based extension of the current VED system. Current government policy and draft legislation set the rate for battery-electric cars at 3p per mile.

So if you hear the 3p-per-mile figure discussed around the Autumn Budget, it is worth remembering that this is not a new 2026 proposal. It was announced at Autumn Budget 2025 and remains the rate currently set out for introduction in 2028. Any Budget change to that rate would therefore be a new development.

What should EV drivers watch for?

Any genuinely new changes to motoring taxes, rates, thresholds or the way existing EV taxes will work.

For more detail, read our guide to what the 3p-per-mile EV tax means for drivers.

2. Public EV charging costs

This is one of the areas we will be watching particularly closely.

HMRC’s current position is that electricity supplied through public EV charge points is standard-rated for VAT. From 1 October 2026, qualifying domestic electricity in Great Britain will temporarily move from the reduced 5% VAT rate to 0% until 31 March 2027. Public EV charging is not included in that temporary reduction and remains standard-rated under HMRC’s current policy.

That means the VAT difference between qualifying domestic electricity and public EV charging will temporarily widen.

HMRC maintained its position on public charging after a 2026 First-tier Tribunal decision concerning electricity supplied at public charge points and has applied for permission to appeal that decision.

At the same time, the government is carrying out an independent review of the cost of public EV charging. The review is looking at what makes up the cost of public charging, how those costs may change and what government, regulators and industry could potentially do to reduce them. It is due to report in autumn 2026.

There is an important distinction here.

Tax costs can form part of the review’s analysis, but the review itself will not recommend changes to tax policy. The government says those decisions are reserved for fiscal events such as the Budget.

What should EV drivers watch for?

Announcements that could change the taxes or other government-controlled costs connected with public charging.

That does not mean a change to public charging VAT has been confirmed or should be expected. It simply means that public charging costs are already under review, while tax decisions sit separately with government.

For more on the current VAT gap, read why public charging VAT remains an issue.

3. EV grants and incentives

There is already financial support available for some people buying an electric car.

The current Electric Car Grant applies to approved zero-emission cars that meet the scheme’s eligibility requirements. There are two grant bands, with maximum discounts of £3,750 or £1,500, depending on the vehicle’s band and sustainability criteria.

There is also targeted support available for some charge point installations.

Five home and workplace charge point grant schemes are currently available until 31 March 2027. For eligible households with on-street parking, the maximum grant increased to £500 per socket from April 2026.

These schemes already exist, so the useful thing to look for in the Budget is whether any of that support changes.

What should EV drivers watch for?

Changes to grant funding, eligibility, discount levels or other financial support for buying an EV or accessing charging.

For someone considering switching to electric, those details may matter more than a headline announcement about EVs in general. 

4. What about charging infrastructure? 

Some Budget announcements may be less immediate for an individual driver's wallet but still matter over time. 

Government funding already supports the rollout of public charge points through programmes including the Local Electric Vehicle Infrastructure Fund, or LEVI. Current allocations are supporting local and combined authorities with public charging projects across England. 

If the Budget changes infrastructure funding or introduces additional support, the effect is unlikely to show up overnight. Infrastructure programmes take time to move from funding decisions to charge points that drivers can actually use. 

But over the longer term, funding decisions can influence where and how public charging networks develop, particularly for people who cannot rely on a private driveway charger. 

What should EV drivers watch for? 

New or changed funding for public charging, particularly where it affects local and near-home charging provision. 

So, what should you actually look for on 28 October? 

For EV drivers, the most relevant parts of the Autumn Budget are likely to be any announcements concerning: 

  • new or changed electric car taxes 

  • measures affecting the cost of public EV charging 

  • changes to EV grants or financial support 

  • new or changed funding for charging infrastructure 

The key word there is changed. 

VED for electric cars already exists. The mileage-based eVED planned for 2028 has already been announced. EV purchase and chargepoint grants are already operating. Public charging costs are already being reviewed. 

The Budget will tell us whether anything is changing on top of that. 

That is what we will be looking for. 

What happens next? 

Once the Budget has been announced on 28 October 2026, we will update this guide with the confirmed changes that matter to EV drivers. 

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