E-mobility in the UK: duty cut on electric taxis as Jaguar invests in R&D

e-mobility in the uk
© iStock/nrqemi

The UK government has introduced measures to encourage uptake of e-mobility in the UK by cutting vehicle excise on electric taxis.

Taxi drivers and companies who purchase zero-emissions capable vehicles will be exempt from the premium rate of excise duty, with the goal of reducing greenhouse gas emissions in urban areas in order to improve air quality and mitigate the impact of climate change. The measure, which coincides with London’s inaugural Climate Action Week, is the latest in a series of government incentives aimed at boosting e-mobility in the UK, including provision of charging points for electric cars and grants for businesses looking to transition to zero- and low-emission transport options.

Helen Chapman, Director of Licensing, Regulation and Charging at Transport for London, said: “We know that cleaning up the black cab fleet is key to improving the capital’s toxic air. From the start of last year we required all taxis licensed for the first time to be zero-emission capable, with close to 2000 of these new clean and modern taxis now driving around London’s streets. We are also incentivising drivers to ditch their old dirty diesel vehicles with payments of up to £10,000 (11,136). We welcome this change in the legislation covering Vehicle Excise Duty, which will help to further accelerate the number of cabbies joining the electric revolution by significantly reducing their annual running costs.”

Meanwhile automotive manufacturer Jaguar Land Rover (JLR) has announced a substantial investment in research and development to produce an electric version of the Jaguar XJ, with a battery manufacturing facility to be based in the Midlands. JLR chief executive Prof Ralf Speth noted that e-mobility in the UK represented the ‘future’ of the country’s transport and manufacturing sectors.

Roads Minister Michael Ellis said: “The government’s ambition is for the UK to be the best place in the world to build and own an electric vehicle, as the country moves at pace towards net zero. Taxis are an iconic feature of our streets and by introducing financial incentives for the most environmentally friendly taxis and improving air quality in city centres, we are proudly putting our money where our mouth is.”


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