Labour announces new £1billion fund for electric vehicles including massive £81,000 discount

Businesses will be able to save up to £81,000 off the heaviest zero emission trucks, which will cover up to 40 per cent of the cost for larger vehicles.

The Zero Emission Van Grant will help companies save £5,000 on new clean vans to further accelerate the transition away from petrol and diesel.

The new measures are designed to help manufacturers adapt to the Zero Emission Vehicle mandate, with annual targets for electric car and van sales.

By the end of the year, 33 per cent of sales must come from electric cars, while 24 per cent will need to be made up of zero emission vans.

This will rise to 80 per cent of cars and 70 per cent of vans by the end of the decade, before only zero emission cars and vans will be sold from 2035.

The Aviation, Maritime and Decarbonisation Minister said the new funding will support the logistics sector, which is worth £170billion and supports 2.7 million jobs.

Keir Mather MP said: "This £1billion investment cuts costs for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices.

"We're helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country."

Labour previously announced a huge £18million uplift to incentives to cut up to £120,000 off the cost of cleaner lorries.

Some businesses have already made use of the funding to decarbonise their fleets, including Marks and Spencer, and Wren Kitchens and Bedrooms.

Julian Bailey, head of group transport at M&S, highlighted how the retailer had already introduced 24 battery electric vehicles across its fleet as it aims to be a zero emission business by 2040.

Labour has also confirmed funding for businesses and public authorities to save up to £1million when installing charging infrastructure for vans, coaches and electric heavy goods vehicles.

Estimates suggest that this will cover 70 per cent of the cost of installing chargers, with this forming the basis of a £170million boost to the Depot Charging Scheme.

It is hoped that this will give fleets across the country confidence to switch to electric, especially if they do not want to rely solely on the public charging network.

Toby Poston, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), described the Depot Charging Scheme as playing a "vital role" in making chargers more affordable and reliable.

He added: "The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence.

"It will encourage more rental operators - particularly SMEs - to electrify at scale, reduce costs, and contribute to the UK’s net zero goals."

The additional funding has been supported by experts for helping to decarbonise a sector that produces a significant portion of greenhouse gases.

Jarrod Birch, head of policy and public affairs of ChargeUK, commented: "The direction of travel for trucks and vans is clear - electrification.

"We called for more enduring funding for electric trucks earlier this year and the Government has delivered.

"Combined with the funding for depot charging, this will really help to tackle businesses' up-front costs when considering electrification."

Despite this, Mr Birch warned that fleet owners and businesses would invest in electric vehicles without considering high running charges, leaving them "crippled".