The UK’s charging industry is anticipating significant financial implications as the government is considering implementing business rates for public charger operators for the first time. Industry group ChargeUK estimates that this could result in a £100 million bill for the sector, particularly challenging given the current slower-than-expected electric car sales.
According to ChargeUK, operators may soon be required to pay business rates on approximately 64,000 parking bays adjacent to chargers, which have not previously been taxed. The group indicates that this additional cost could increase annual charging bills by approximately £300 if passed on to consumers.
As of September, the UK had 86,000 public chargers, reflecting an 18% increase from 73,000 at the end of 2024, according to Zap Map. Currently, business rates serve as a tax on commercial properties in the UK, funding local services, but charging bays have not been classified as rateable properties until now. The Valuation Office Agency (VOA) announced that this would change next April, making operators liable for payments.
Industry leaders, including Ian Johnston, chief executive of Osprey Charging, have expressed concerns about the potential need to close certain sites or pause investments, especially in less populated areas where electric vehicle uptake is slower. ChargeUK has also contested the VOA’s estimate that the cost to the sector would be only £25 million, believing it underestimates the number of rateable bays.
Additionally, the VOA may backdate this bill to April 2023, potentially doubling the initial £100 million estimate. The Conservative government exempted charging equipment from business rates in 2022, but this exemption did not extend to parking bays. ChargeUK has called for these bays to be excluded from future taxes, pointing to government goals for promoting electric vehicle use.
The VOA stated it would consult with charging companies regarding these changes, emphasizing its legal obligation to assess properties for taxation. The Treasury has been approached for comments on this matter.
Source: https://www.theguardian.com/environment/2025/nov/02/uk-charging-industry-could-face-100m-bill-under-business-rate-changes