Labour scraps £950m rapid EV charging fund

The UK Labour government has abandoned the £950 million Rapid Charging Fund (RCF) introduced by the previous Conservative administration, opting instead to allocate a smaller sum to support on-street electric vehicle (EV) charging.

The move marks a significant policy shift in the nation’s EV infrastructure strategy, with growing concern from industry leaders about the implications for long-distance travel and consumer confidence.

The RCF, announced in 2020 by then-Chancellor Rishi Sunak, aimed to enable the installation of more than 6,000 rapid and ultra-rapid charge points along England’s motorways by 2035. Its core objective was to upgrade grid capacity at motorway service areas, ensuring that multiple EVs could be charged simultaneously, an essential requirement for the UK’s transition away from petrol and diesel vehicles.

However, the fund became mired in delays and was never formally included in departmental budget plans. It faced criticism over its commercial viability, with motorway service operators reportedly reluctant to participate. Concerns were also raised that the fund’s design might unfairly benefit a small number of service providers.

The Department for Transport has since confirmed that the RCF will not proceed, citing a lack of commercial interest and the need to reallocate resources more effectively. The focus will now shift toward supporting on-street residential charging, with a new initiative set to channel £400 million into local infrastructure projects.

The decision has sparked a mixed response across the transport and automotive sectors.

“It is disappointing to see the failure of the Rapid Charging Fund, as a robust charging infrastructure is essential to support the growing number of EV drivers. Franchised dealers play a key role in guiding consumers through the EV buying journey, but without sufficient charging points, many drivers remain hesitant to make the switch. The government must work closely with industry to ensure that future initiatives are practical, commercially viable, and meet the needs of both motorists and businesses.”

The NFDA, which represents franchised car and commercial vehicle dealers across the UK, highlighted that the original RCF target – installing over 6,000 rapid chargers by 2035 – had been deemed commercially unviable by motorway service operators. The association underscored that “charge anxiety,” rather than vehicle range, is now the primary barrier to EV adoption, according to recent Ipsos Mori polling.

While the NFDA welcomed Labour’s new £400 million commitment to charging infrastructure, it emphasised the importance of streamlined processes and close collaboration with industry stakeholders to avoid the missteps that plagued the RCF.

“Franchised dealers are the trusted voice for consumers in the EV transition,” Robinson added. “We remain committed to working with policymakers and industry partners to ensure the UK’s shift to electric mobility is both seamless and sustainable.”

With battery electric vehicles accounting for over 21% of new car sales in May, the need for a reliable, nationwide charging network is becoming increasingly urgent. Critics warn that without a comprehensive motorway charging strategy, the UK risks slowing its progress toward decarbonising transport, undermining both climate goals and consumer confidence in electric driving.