The AA has renewed calls for a cut in VAT on public electric vehicle charging from 20% to 5% ahead of the Spring Statement, as new data reveals that drivers could save up to £4.80 per ultra-rapid charge.

According to the AA EV Recharge Report for February 2025, charging prices remained flat, but pump prices edged up again to 139.80 pence per litre – just shy of the 140p mark. As a result, off-peak ultra-rapid charging is now 2 pence per mile cheaper than petrol.

The AA argues that cutting VAT on public charging to match the domestic rate would reduce costs and eliminate the so-called “pavement tax” on households without access to home chargers. Jack Cousens, head of roads policy for The AA, said: “The Chancellor has the opportunity to help the transition to electric cars, by making some positive fiscal choices on Wednesday.”

“Cutting VAT to match the domestic rate of 5% will help households without dedicated off-street parking avoid the so called ‘pavement tax’. As well as saving drivers nearly £5 a charge, it would encourage those changing their car to opt for one with a plug.”

The report also outlines growing concerns around the incoming changes to vehicle excise duty (VED) for EVs. From 1 April 2025, electric vehicles will no longer be exempt from road tax, with those over £40,000 also facing an annual £410 supplement for five years.

Cousens said: “As most private car buyers opt to buy a used car, the introduction of VED at the full rate from 1 April could have a negative impact on the future of EV ownership. Drivers tell us that incentives are still required at this early stage of adoption.

“While all should pay vehicle tax, a discounted rate for EVs would make buyers take notice before spending their hard-earned cash.”

The AA report suggests many existing EV drivers are attempting to defer the cost by taxing their vehicles early at the current £0 rate, delaying payment until March 2026.