Wales gives EV charging firms a decade-long rates break – what does it mean for drivers?

Wales is giving EV charging sites 100% business rates relief until 2036, helping operators cut costs and invest in the charging network. Will England follow suit?

The Welsh government has announced 100% relief from business rates for EV charging bays and forecourts until 2036.

The move is designed to reduce some of the costs faced by charging operators and encourage investment in new infrastructure, particularly in parts of Wales where drivers currently have fewer places to charge.

But what does the announcement actually mean for EV drivers?

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

Will it make charging your EV cheaper?

Not necessarily.

The rates relief is not a discount on the electricity you buy when charging your car. Instead, it means businesses operating qualifying EV charging infrastructure will not have to pay non-domestic rates on those sites, cutting one of the costs faced by charging operators.

Non-domestic rates – otherwise known as business rates – are a property tax charged on commercial ev charging stations rather than residential ones.

There’s no requirement for operators to pass that saving directly on to drivers, so the announcement doesn’t mean public charging prices will automatically fall.

Instead, the potential benefit for drivers is what operators may do with the money they save.

Could it mean more EV chargers?

That’s the aim of the policy. By removing some of the cost associated with running charging sites, the Welsh government hopes to make investment in new and existing infrastructure more attractive.

That could eventually mean more charging points, better coverage and greater choice for electric car drivers, particularly in areas where the network is currently less developed.

Welsh cabinet minister for finance Elin Jones said reliable charging infrastructure would be essential if Wales is to make the switch to electric cars.

“The switch to EV is a huge opportunity to cut emissions – but that transition will only work if people can rely on the infrastructure to support it,” she said. “We want to see a thriving charging network right across Wales, including in the areas that need it most, so that nobody is left behind.”

The rates relief is intended to make it easier for operators to invest in that network by reducing the risk of unexpected rates bills.

“This relief removes a potential barrier to investment in Wales, giving operators the certainty they need to keep expanding infrastructure, without the risk of unexpected rates bills,” Jones explained.

How long will the EV charging rates relief last?

The relief is being introduced using local authorities’ existing discretionary powers in the current financial year. Where applicable, it can be backdated to the start of the 2024-25 financial year.

The Welsh government plans to bring forward regulations later this year to put the relief on a statutory footing from 2027-28 through to 2035-36, subject to Senedd approval.

That would give charging operators and local authorities greater certainty over the costs of running the infrastructure for years to come.

Jones said: “Providing this support for a full decade sends a clear signal that Wales is serious about building a charging network we can all depend on.”

Could England follow suit?

This is where things get less certain, because there’s currently no confirmed equivalent rates relief for EV charging sites in England.

Carwow asked the HM Treasury whether England could follow Wales’ lead.

An HM Treasury spokesperson said: “The Chancellor is fully focused on his priorities, which will boost business, help with the cost of living and support people in every postcode.

“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”

So, for now, there is no indication that EV charging operators in England will receive the same 10-year rates relief.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

Click here to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.