Businesses handed lifeline through electric van discounts as trade body welcomes £1bn rollout

She said: "The Government's continued commitment to supporting the uptake of zero emission vans and trucks is a vital and necessary step for the commercial vehicle sector."

Ms Robinson added that pairing grants with improved charging infrastructure would be key to giving firms the tools they need to invest in electric vehicles.

"The extension of grants alongside increased funding for depot charging infrastructure will help give businesses greater confidence to invest in electric fleets, particularly at a time when cost pressures and fuel price volatility remain key concerns," she said.

The new grants are the latest announcement by the Government to help the UK meet its ambitious Zero Emission Vehicle mandate, which requires 100 per cent of new van sales to be electric by 2030, with at least 24 per cent electric by this year.

Her comments come as ministers confirmed businesses will be offered major discounts to switch to electric vehicles, with up to £5,000 off electric vans and as much as £81,000 off the heaviest zero emission lorries, equivalent to around 40 per cent of the purchase price.

Aviation, Maritime and Decarbonisation Minister Keir Mather said: "This investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices."

He highlighted the importance of logistics to the UK economy, which contributes £170billion annually and supports around 2.7 million jobs.

Alongside vehicle discounts, the Government revealed it is investing £170million to expand the Depot Charging Scheme, aimed at helping businesses install charging infrastructure.

Firms and public sector organisations will be able to claim up to 70 per cent of installation costs for facilities serving vans, coaches and heavy goods vehicles, with potential savings of up to £1million.

The measures have been designed to tackle two of the biggest barriers to switching to electric fleets, which include high upfront costs and limited charging access. Major retailers already investing in greener fleets explained how the funding will help accelerate their plans.

Lee Holmes, Transport and Logistics Director at Wren Kitchens, said: "Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty."

The company said it has already introduced 44-tonne electric lorries and rapid charging hubs.

Meanwhile, Julian Bailey, Head of Group Transport at Marks and Spencer, added: "We welcome this investment, which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation."

Support has also come from the wider vehicle leasing sector. Toby Poston, of the British Vehicle Rental and Leasing Association, said the depot charging scheme would play a crucial role in helping operators, particularly smaller firms, electrify at scale.

Despite the positive reaction, Ms Robinson stressed that further progress on infrastructure would be essential to ensure the transition succeeds nationwide.

"While this support is very welcome, it is essential that it is complemented by further measures to accelerate the transition, including improvements to grid capacity and the rollout of dedicated commercial vehicle charging infrastructure, to ensure operators across the UK can make the switch effectively and sustainably," she said.

The announcement follows an earlier £18million funding boost in January, which was hoped to help cut the cost of electric lorries by up to £120,000.

With pressure mounting on businesses to cut emissions while managing costs, the Government hopes the latest incentives will encourage more firms to make the switch, and do so faster.