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EV trends in the UK: What businesses should plan for now

  • Aug 20, 2025

  • 7 min read

The electric vehicles (EV) space is – ahem – a fast-moving one. From new government grants to improved charging infrastructure and expanding Clean Air Zones, the landscape is shifting quickly.

These changes matter, because thousands of UK businesses, including your competitors, are already using them to reduce their costs, improve their employee benefits package, and make serious progress on sustainability.

To help you stay ahead, we’ve rounded up the five key EV trends business leaders need to know now.

1. The government is slashing the cost of new EVs

First up: did you know the government is actively subsidising the cost of switching to electric? Through the Electric Car Grant, drivers can now get a discount of £1,500 to £3,750 on eligible new EVs priced at £37,000 or less.

That includes cars leased through salary sacrifice, making it even more cost-effective for businesses offering EVs as a benefit.

The size of the discount depends on how sustainably the car is produced, including the energy used to build the vehicle and manufacture its battery. It’s a smart incentive designed to reward the cleanest cars, and the companies choosing them.

And it’s now been extended and expanded. In the Autumn Budget 2025, the government announced it will invest an extra £1.3bn in the Grant, and it could run until 2028-29.

The “expensive car” threshold for electric cars is also going up from £40,000 to £50,000 from April 2026. This means fewer EVs get hit by the charge.

If your business is considering making the switch, now’s a great time to get your wheels in motion.

2. Charging infrastructure is better than ever

One of the most common concerns we hear from businesses is about charging: Is the infrastructure really ready? Short answer: yes. And it’s improving by the day.

Octopus Electroverse, Europe’s largest charging network, has over a million chargers and counting through the app. Whether it’s your commute, weekend travel, or cross-country trips, reliable chargepoints are already widespread, and still growing.

The UK government is also investing heavily. Just last month, £63 million was pledged to expand at-home charging for households without driveways and to install thousands of chargepoints at business depots across the country.

The Autumn Budget included an extra £200m to promote the rollout of public charging, on top of the £400m previously allocated.

And if you’re looking to install chargers at your own sites, the EV infrastructure grant makes that easier too. It covers:

  • 75% of installation costs (up to £15,000)
  • £350 per chargepoint socket
  • £500 per enabled parking space
  • Available across up to five different sites

Plus, you’ll get 100% business rate relief on all non-domestic EV charging points, including public charging networks and workplace chargers.

All this is making the switch to electric a no-brainer for most UK businesses.

3. Clean Air Zones are expanding across the country

Clean Air Zones (CAZ) and Ultra Low Emission Zones (ULEZ) are being rolled out in more UK cities — and the impact on businesses is growing. If your vehicles don’t meet emissions standards, you could be paying up to £12.50 per vehicle, per day to operate in these areas.

That already includes key cities like London, Birmingham, Glasgow, and Bristol, with others set to follow. Oxford, for example, is planning a major expansion of its Zero Emission Zone (ZEZ), extending far beyond its current pilot area.

EVs, on the other hand, are usually exempt from CAZ charges because they produce no tailpipe emissions. But it’s worth noting that in London, EVs will soon lose their full exemption from the Congestion Charge and will pay a discounted rate instead.

Even with the new mileage-based charge on EVs (“eVED”), which will start at 3p per mile from April 2028, you’re still likely to be better off. That’s because the lower overall running costs far outweigh the new tax. And if you’ve already got a car through our salary sacrifice scheme, your price will stay the same, even when the new tax comes in.

So although costs for high-emission vehicles are rising, EVs offer a smart route to compliance and savings. Switching now could protect your business from mounting daily charges and help you stay ahead of future regulations.

4. New petrol and diesel cars will be banned from 2035

The UK will ban the sale of new petrol and diesel cars from 2035. It’s a major policy shift and a clear signal that EVs are the new default for commercial and personal transport.

2035 might feel distant, but the financial incentives to switch are already here. Rising fuel prices, sky-high maintenance costs for petrol and diesel vehicles, and increasing CAZ charges are making EVs a far more cost-effective option for employees and businesses.

Forward-thinking companies are acting now – not just by updating their fleets, but by helping employees to access EVs at an affordable price. One of the best (and cheapest) ways to do this is by offering an EV salary sacrifice scheme. It’s quick and easy to set up – and best of all, it’s completely free.

5. Businesses and employees are loving EV salary sacrifice

Let’s explore that in more detail. Our EV salary sacrifice scheme is rapidly gaining traction across lots of sectors, and for good reason.

For your employees, it’s a smart, tax-efficient way to drive electric without the upfront costs. They get a fully insured, maintained EV for a single monthly payment taken from their pre-tax salary. No hidden costs, no faff – just huge savings and a top-spec car.

It’s a zero-cost employee benefit that ticks every box:

We’ve helped thousands of businesses launch salary sacrifice schemes, from Huel to Amtivo Group. We handle the setup, the education, and the admin, so your team can hit the road quickly and confidently.

We’ll even throw in a free home charger installation, or 4,000 miles of Electroverse credit, to make the transition even smoother for your employees.

And with ultra-low Benefit in Kind (BiK) rates (now protected until 2030!), there’s never been a better time to join us. 

Now you’re up-to-speed, is it time to get started?

For business leaders, the direction of travel is clear. Whether you want to cut costs, engage your employees in your sustainability goals, or offer more competitive benefits, EVs should be part of the plan.

Government support is strong, chargepoints are spreading quickly, and salary sacrifice is making EVs more accessible than ever, all without costing your business anything. And the sooner you get started, the more your business (and your people) stand to gain.

If you’re ready to explore what this could look like for you, we’re here to help.

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