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The Diesel Deja Vu Behind Today's EV Incentive Collapse

Comparative analysis of EV incentive trends and historical parallels with diesel policy changes.

Nik Ellis17 November 2025
The Diesel Deja Vu Behind Today's EV Incentive Collapse

If you've been driving long enough, the current situation with electric vehicles feels suspiciously familiar. In the Nineties & early Naughties, the government spent years encouraging drivers to abandon petrol and embrace diesel.

People listened. Fleets switched. Families upgraded. But then the tone changed. Incentives were quietly withdrawn, and diesel cars once praised as eco-friendly rapidly became no different to petrol.

Phase 1: Encourage the switch

Over the last decade, the UK government has strongly promoted electric vehicles:

  • The Plug-in Car Grant knocked thousands off list prices

  • Company car drivers enjoyed extremely low Benefit-in-Kind tax rates

  • EVs were exempt from the London Congestion Charge

  • Road tax incentives made EVs the financially sensible choice

Phase 2: Withdraw the incentives once the public has committed

Then, almost as predictably as clockwork, the incentives started disappearing:

  • The main purchase grant was axed entirely

  • Benefit-in-Kind rates on EVs have been scheduled to rise year after year

  • EVs will no longer be exempt from the London Congestion Charge

  • Road tax (VED) exemptions are ending

Why does this keep happening?

At the heart of it is a pattern of policymakers prioritising short-term behaviour change without committing to long-term support.

Motorists deserve better

No one disputes the need for cleaner transport. But the "bait and switch" approach undermines public trust, punishes early adopters, and makes people wary of the next major shift.

If we want a greener, fairer transport future, the government must learn the lessons of the diesel saga.

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