In 2025, new battery-powered registrations exceeded 22.7% of the total. Here is the British system of taxes, fines and incentives for stopping thermals from 2035
The United Kingdom is moving towards a totally electric future. This, at least, would be the plan of the Starmer government which, unlike the EU, continues towards a stop to internal combustion cars from 2035 onwards. There overhaul scheduled for the second half of 2026 could relax some of the regulations and slow down the timeline, but until then manufacturers will have to stick to the ambitious roadmap of the Zero Emission Vehicle Mandate. The document, which came into force in 2023 with the Sunak government, provides that new registrations of each brand reach a precise quota of battery-powered vehicles, excluding hybrids, which progressively rises from 23 (2024) to 100% (2035). At the moment, market data indicates a delay in achieving the objectives: in 2024 the actual percentage of electric cars sold has only reached 19.6% (a decidedly higher percentage, 5.2% more, than that of Italy and more similar to countries like Austria and Germany, according to data provided by Acea), but, according to an analysis by the European NGO T&E, no manufacturer will have to pay the very high fines of 12 thousand pounds (13,700 euros) per car sold less established by the Zev, because there are exemptions and a system of purchasing credits from rival manufacturers who have largely exceeded their quota. The data for the end of 2025 are not yet available, but the scenario should be similar, given that theat Zev’s share it was 26% and electric cars registered up to November were 22.7% of the total (Smmt data).
The numbers compared
| Village | % electric cars 2024 | % electric cars 2025 (partial data) |
|---|---|---|
The incentives
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The fine system, therefore, was not enough to push sales according to calculations even in its second year and the government now hopes that the two new incentive packages will definitively accelerate the transition. The first, theElectric Car Grant presented in July 2025, predicts help for the purchase of an M1 category electric car priced under £37,000 (approximately 42,300 euros) and a range of at least 100 miles (equal to approximately 161 kilometres), with a contribution that varies based on the model chosen. Cars that belong to band 1 (including Mini Countryman, Ford Puma and Nissan Leaf) receive a discount of £3,750 (approximately 4,300 euros) applied directly by the dealer, while for those in band 2 (various Citroën, Peugeot and Volkswagen models) the contribution is £1,500 (approximately 1,700 euros). Unlike the latest Italian package of 597 million, British aid is available to everyone, regardless of scrapping or equivalent ISEE band. The total invested is also higher: ai £650 million (740 million euros) initially, funds of 1.3 billion pounds (1.49 billion euros) will be added to be used until March 2030.
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The second package, worth 63 million, provides aid and tax discounts aimed at strengthening the network of public charging stations (around 82,000 active in the UK), but also private ones (with the installation of safety ducts for cables), together with the replacement of medical vehicles with electric equivalents and the improvement of signage. They are measures intended to simplify the lives of those who have already chosen an electric car, but, above all, they would like to eliminate some of the uncertainties that hold back those who still prefer thermals, because the government’s line remains clear and it is difficult to imagine a reverse gear like the one seen in the EU, even if the market numbers for now have turned out to be lower than expected and the costs for manufacturers remain high. There are those who support Zev data on British CO2 emissions related to transport which, in the pre-Pandemic period, represented approximately 27% of the total, well above those of companies (17%) and the energy sector (21%). “The transition to electric vehicles is essential for creating jobs and growth, improving air quality, ensuring energy security and making cities quieter and cleaner,” MP Chris McDonald said during a visit to the Nissan Leaf production site in Sunderland (north-east England) on 17 December 2025.
Production of electric cars
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The Leaf is one of the five models currently produced in the UK, in the coming years manufacturers such as Jaguar Land Rover and Mini (Bmw) should adapt to their own, also thanks to the total incentives of 2.5 billion pounds (2.86 billion euros) made available by the government with the research and development program Drive35while luxury brands such as Aston Martin, Bentley and McLarenfor which exemptions are provided for internal combustion engines due to the very low number of cars produced. From 2028, then, the annual tax of 3 pence (4 euro cents) per mile traveled should arrive. It is a measure that aims to compensate for the lack of tax revenue from excise duties on fuel and which will significantly increase costs for those who drive a battery-powered car. The British don’t seem to have appreciated it all that much, but it’s another sign that the future without a muffler, across the Channel, is destined to become a reality.
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