The UK government is injecting £1bn into accelerating the shift to electric trucks and vans through 2030, as businesses face mounting pressure from fuel price volatility linked to Middle East tensions. Companies purchasing the heaviest zero-emission trucks will save up to £81,000 per vehicle - representing 40 per cent of the cost - under the new programme.

An existing grant offering up to £5,000 for electric van purchases continues, while an additional £170mn will fund charging infrastructure installation. The initiative aims to help businesses and public authorities save up to £1mn on charging infrastructure costs. Average UK petrol prices have risen 9 per cent to 144.51p per litre since the Iran conflict began, with diesel up 17 per cent to 166.24p.

Marks & Spencer welcomed the funding, noting its fleet already includes 24 electric vehicles as it targets net zero by 2040. The Society of Motor Manufacturers and Traders reported electric van sales grew 34 per cent year-on-year to 3,853 units in early 2026, though market share remains at just 12 per cent - half the 24 per cent target. With heavy-duty vehicles facing even greater transition challenges, the government will review its zero emission vehicle mandate for cars and vans in early 2027.