New electric truck grants are a positive signal but long term certainty needed, says Logistics UK

Responding to the announcement today (6 January) that an additional £18m has been allocated to the Plug-in Truck Grant scheme, Head of Decarbonisation Policy at business group Logistics UK Lamech Solomon commented about the scheme’s potential impact:

“The Plug-in Truck Grant is fundamental to the continued uptake of electric HGVs, and today’s announcement increasing the grant for electric HGVs up to £120,000 per vehicle is a welcome step forward that can help support the business case for industry to invest. However, with long procurement cycles, the sector needs certainty that these new rates will be maintained far beyond March 2026, so it has confidence to plan and invest: our recently published report highlighted that over 60% of industry respondents believed the government had not provided adequate funding to support the decarbonisation of their fleets.

“Commercial and operational viability will always be the main driver for logistics operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure: 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging and more than 80% disagree they can install chargers with sufficient capacity at their operating sites. The logistics sector is committed to decarbonising but needs the government to provide sufficient support to make this transition a realistic possibility for industry.

“These are the factors that need to be considered during the consultation, also announced today, regarding the regulatory roadmap to phase out sales of new, non-zero emission HGVs. The voice of industry must be heard and government should work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on, continue to move smoothly through the UK supply chains.”

Logistics UK is one of the UK’s biggest business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please visit logistics.org.uk