UK companies expected to spend £12bn switching to electric vehicles

UK firms will likely spend more than £12bn switching their petrol vehicles for clean electric versions over the next two years, according to a new survey by Centrica.

It also found that nearly half of UK businesses are planning to invest in chargeable cars and vans in advance of the government’s ban on sales of new internal combustion engine vehicles by 2035.

The Treasury is expected to accelerate the trend in this week’s budget by signaling an end to a decade of freezes on fuel duty for millions of drivers, as part of plans to meet tougher climate laws.

Sales of electric vehicles are climbing quickly but official figures show that they still accounted for only 2 percent of new car registrations last year.

The uptake of low-emissions driving is a key pillar of the government’s plans for cutting carbon emissions to virtually zero by 2050 to end the UK’s contribution to the climate crisis.

Rachel Maclean, the transport minister, said: “It is encouraging to see UK businesses investing in electric vehicles and embracing greener technology to decarbonise our transport network.

“Businesses having confidence in electric vehicles is crucial to end the UK’s contribution to climate change and improve air quality for all.”

More than a third of companies say the government’s looming ban on petrol and diesel cars has made them speed up plans to shift to clean driving, according to a survey by the owner of British Gas.

The same proportion of companies told Centrica that access to ultra-low emissions driving zones was also a factor in their decision.

However, more than two-thirds of companies said they were discouraged from investing in electric vehicles by the cost of new cars and vans, and concerns over a spike in their energy bills.

Alan Barlow, managing director at Centrica’s business solutions division, said companies intending to switch to electric vehicles would be able to limit their bills by investing in solar panels and battery packs, or smart software that automatically charges vehicles at night, when energy prices are at their lowest.