UK Gov to Hand Out £700 Million for EVs – But Only If You Buy This Car?

The government’s bringing back EV grants – but this time, it’s less about going green and more about going Made in Britain

Could the Nissan Leaf be the next national car? Sounds wild, but with the UK Government planning to throw £700 million at boosting electric vehicle sales – and reports suggesting only UK-built EVs may qualify for the cash – it might just happen. This isn’t just about climate targets anymore. It’s about protecting British manufacturing, curbing cheap imports, and getting private buyers back in the game. I break it all down in the video below.

The Return of EV Grants?

Remember when the government scrapped the EV plug-in grant back in 2022? Well, now it seems we’re seeing a bit of a U-turn. Reports suggest that £640 million to £700 million is being earmarked to incentivise private buyers to switch to electric vehicles.

Now here’s the catch – and it’s a juicy one. These potential grants may only apply to UK-manufactured EVs, meaning imported models, particularly those from China, could be excluded. The idea? Encourage local production, protect British jobs, and stop the market being swamped by budget-friendly Chinese imports.

The clearest winner in all this? Nissan. The Sunderland-built Nissan Leaf is likely to become the poster child of this new policy.

What Has Been Confirmed

While the grants themselves haven’t been officially confirmed yet, Transport Secretary Heidi Alexander has already announced £63 million to improve EV charging infrastructure across the country.

That includes:

• £25 million for cross-pavement charging, helping homeowners without driveways access on-street charging
• £30 million for depot and fleet charging, supporting councils, NHS fleets, and local services
• Plus investment in better signage and public charging visibility, making it easier for drivers to find a plug

So, even before we get to potential purchase subsidies, the groundwork is being laid for better day-to-day EV usability – especially in cities.

Why It Matters

Look, I’m not anti-EV. In fact, I’ve repeatedly said they’re ideal for the right people – urban drivers, short journeys, and homes with off-street parking and smart chargers.

But if you’re in a terraced house, flat, or don’t have a dedicated charger, owning an EV can still be a nightmare. That’s where cross-pavement charging might be a game-changer – although let’s be honest, digging gullies across pavements sounds like a right faff.

Wouldn’t it just make more sense to convert every lamppost into a charger? I mean, they’re already right there.

It’s Not Just About Climate – It’s About the Economy

Let’s not pretend this is purely about saving the planet. The UK contributes less than 1% to global carbon emissions. Meanwhile, China, India, and the US are the real heavy hitters. And guess where we’re importing most of our EVs from? Yep, China.

So this feels just as much about protecting UK industry, encouraging carmakers like Nissan, Mini, Vauxhall, and possibly even new entrants like MG to manufacture here – and reduce the carbon footprint caused by shipping everything halfway across the world.

But Will Prices Be Inflated?

One concern being raised is that car manufacturers could use these grants as an excuse to sneak prices up. We’ve seen this game before. “Oh, there’s a grant? Cool, let’s just add two grand to the base price.” It’s sneaky, and hopefully, the government puts in safeguards to avoid this kind of behaviour.

That said, with used EV prices plummeting by up to 50%, it’s clear that carmakers are already struggling to shift new metal. So any upward price tweaks might be commercially risky – especially with so many EVs stacking up on forecourts.

What’s the Endgame?

The government wants 80% of new car sales to be electric by 2030. But so far this year (2025), only around 22% of sales are EVs – and the vast majority of those are to fleets, not private buyers.

With incentives like Benefit-in-Kind for company cars still in place, the private buyer has been left out in the cold. Add in the reintroduction of VED (road tax) for EVs and the fact that congestion charge exemptions are gone, and it’s no wonder private EV demand has stalled.

That’s why this new subsidy could be crucial – but it’ll need to be generous, simple, and widely applicable to make a real dent.

Final Thoughts

This is more than just a green initiative – it’s a strategic move to:

• Revitalise the UK car industry
• Protect local jobs
• Tame the rise of Chinese car brands
• And yes, edge us closer to those net-zero targets

But it needs to be done right.

👉 If subsidies come back, they must be transparent, fair, and capped appropriately to help real people – not just fleet managers or luxury car buyers.
👉 And they must be backed by better infrastructure, especially for the millions of us without driveways.

EVs aren’t going away. But if we’re going to embrace them fully, the incentives need to make sense, and the options need to be accessible.

What Do You Think?

Would this scheme get you to consider an EV?
Is favouring British-built models the right move?
Or should the market decide without government interference?

Let me know in the comments below. And as always — stay tuned, because if the government drops official details, I’ll be right here breaking it down for you.

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