XLCR wants stronger tax breaks as electric van owners face £15 daily charge

WITH plans for electric van owners to face a £15 daily charge in central London once the 100% discount for EVs from the Congestion Charge goes on 25 December 2025, leasing broker XLCR Vehicle Management is urging the government to create stronger incentives for businesses when purchasing electric vehicles.

If the discount is not extended by Transport for London, the broker believes that creating more tax breaks is the best way to keep businesses happy whilst ensuring a greener economy.

Alex Woodcock, from XLCR Vehicle Management, said: “If drivers are inevitably going to face extra charges, we urge the government to create stronger incentives for businesses when purchasing electric vehicles, such as offering better tax benefits.

“Otherwise, we fear this will deter businesses from transitioning to electric, which could have detrimental effects on the environment.

“Currently for taxable benefits, there is no difference to the business purchasing electric vehicles, although grants are available for electric vans worth up to £5,000 via the Plug-in Van Grant.

“Understandably, fuel saving plays a big part for electric van owners but the sheer cost difference between them and diesel makes businesses see no point, especially if they will have to pay £15 a day to enter central London.

“If there’s no reverse decision on the current discount, we strongly urge government to provide alternative solutions which will help to ease the financial impact on businesses.”

XLCR Vehicle Management was recently acquired by Global Vans at the beginning of the year.