The UK government has announced a significant financial injection of £18 million to reduce the cost of electric lorries, potentially saving businesses up to £120,000 per vehicle. This initiative is part of a broader £318 million investment aimed at decarbonising the freight sector, making green logistics more accessible and affordable for British businesses.
Key Takeaways
- Up to £120,000 discount available on new electric lorries.
- £18 million allocated to extend the Plug-in Truck Grant until March 2026.
- Part of a £318 million green freight investment plan.
- Consultation launched on phasing out new non-zero emission HGVs by 2040.
Slashing the Cost of Green Lorries
The enhanced Plug-in Truck Grant will make it cheaper for hauliers and fleet operators to transition to electric vehicles. The grant levels vary based on truck size, with smaller trucks (4.25t to 12t) eligible for up to £20,000 in savings, mid-sized trucks (12t to 18t) up to £60,000, larger trucks (18t to 26t) up to £80,000, and the largest lorries (26t and over) receiving up to £120,000.
This funding aims to bridge the gap between the typically higher upfront cost of electric lorries and their lower day-to-day running costs compared to diesel alternatives. By making the initial purchase more affordable, the government hopes to accelerate the adoption of zero-emission technology, supporting businesses in reducing operational expenses and environmental impact.
A Roadmap to Zero Emission Freight
In conjunction with the increased grant funding, the government is also launching a consultation on a regulatory roadmap to phase out the sale of new non-zero emission heavy goods vehicles (HGVs) by 2040. This move is designed to provide the industry with the long-term certainty needed to invest in and plan for the transition to a fully zero-emission fleet.
The initiative is expected to boost growth, create jobs, and support the UK’s climate obligations. Companies like Amazon and Marks & Spencer have already begun integrating electric delivery trucks into their operations, supported by previous government investments in zero-emission HGV and infrastructure demonstrator programmes.
Industry Welcomes the Support
Businesses have welcomed the government’s commitment to decarbonising commercial fleets. Amazon UK has highlighted its investment in electric HGVs, aiming for the UK to host the largest number of electric heavy goods trucks within its global network. The company expressed its eagerness to continue collaborating with the government to foster sustainable logistics solutions and achieve net-zero carbon goals by 2040.
The government’s strategy aims to ensure that the transition to net-zero emissions is economically viable for businesses, fostering investment and job creation within the sector.
