Ambitious net zero plans prompted the previous government to mandate that 80% of new cars sold in the UK should be zero emission vehicles by 2030, increasing to 100% by 2035. Delivering infrastructure locally - in particular charging points (CPs) - to support the widespread adoption of electric vehicles (EVs) will be a key challenge for local authorities.
But with budgets tight and a new government in Westminster, can we expect any changes to the EV policy landscape and how can local authorities prepare?
Balancing the books
The new Labour government has so far signalled its intention to continue working toward the EV targets set by the Conservatives.
With the UK emerging from the high-interest rates and low growth of the last few years however, fiscal headroom is limited. This is why, as long ago as February, then Shadow Chancellor Rachel Reeves announced that the £28 billion per year climate investment policy, seen as Labour's central economic and environmental policy, would be halved.
At the same time, a new National Wealth Fund is a key policy of the incoming government that promises £7.3bn to support innovative businesses. A significant £1.5bn of this fund has been allocated to develop gigafactories – including for electric vehicles – so green infrastructure will clearly be a strong focus for Labour.
So, what could this mean for local authorities looking to develop the EV infrastructure that’s needed to support their own net zero-inspired journey toward 2035?
LEVI
The key funding vehicle for EV infrastructure so far has been the Local Electric Vehicle Infrastructure (LEVI) fund. With 90% of tranche 1 of this fund already distributed to local authorities, it seems unlikely that it’ll be impacted by budgetary pressures elsewhere.
Other funds however – in particular the Rapid Charging Fund of £950m which has yet to move beyond pilot status – are on shakier ground.
For the foreseeable future then, LEVI remains the best means for local authorities to deliver the infrastructure needed for their own communities to make the switch to an EV. So, how to go about it?
While it can seem daunting, the opportunity for local authorities to bring on-street charging to residents shouldn’t be understated. Not only does it give greater choice by democratising access to EVs, but it also means cleaner air and healthier streets. Charging infrastructure can also generate revenue which local authorities can use to offset any initial investment in infrastructure, as well as support wider transport and infrastructure policies.
Beyond government too, the tech is rapidly evolving.
Until recently, it was the case that a charging point operator’s (CPOs) hardware (the CP itself) and software (the management of the charging network) were bound together. This meant that a local authority wanting to change CPO would be required to remove and replace its CPs – an expensive and time-consuming process. Our own recent absorption of existing charging infrastructure in the borough of Richmond & Wandsworth changes this, and empowers local authorities to shop around for the CPO best suited to their needs.
This will force competition in the market that will ultimately drive down costs and drive up service quality. So, the key thing for local authorities is to partner with a CPO that can meet the challenge of rolling out charge points within their unique neighbourhoods and geographies, while also embracing the LEVI fund and other policy mechanisms that the government might introduce further down the line.
Planning ahead
Another key consideration when delivering EV infrastructure is planning. Since the election, the new government has started consulting on the National Planning Policy Framework (NPPF) and local authorities should consider EV charging infrastructure as they respond to this.
The previous NPPF included the EV mandate and this is not expected to change. The 2035 target for ceasing the sale of fossil fuel-powered vehicles being moved forward to 2030 was part of Labour’s election campaign and so, if anything, we might see even more ambition from this government around green mobility. Ensuring planning policy is aligned with this target isn’t likely to change.
Conclusion
The new government has signalled it is pro-EV and has a strong green agenda, albeit one that is tempered by economic circumstances.
Its ambition to bring forward the ban on new ICE vehicle sales and to provide greener transport solutions on a national scale means the LEVI fund is likely to continue and local authorities should learn from the tranche 1 funding which has already been allocated, and prepare for further tranches.
Key to this will be partnerships with industry to deliver plans that are bespoke to local authorities’ unique communities and landscapes.
John Lewis, CEO, char.gy
This article was first published in LAPV magazine (localgov.co.uk)
Read in the LAPV Autumn 24 Issue
