GI Partners executes market move in market

UK Charging Industry Faces £100M Bill from Business Rate Changes

Deal Background

The UK government is considering making public electric vehicle (EV) charging operators pay business rates for the first time, a move that industry bodies estimate could cost the sector up to £100 million. This change comes as the number of public chargers has soared in recent years to cater to the growing fleet of over 1 million battery electric cars on British roads.

Motivations and Implications

The proposed business rate changes are driven by the Valuation Office Agency (VOA), which has informed the charging industry that individual bays in larger charging sites and standalone EV charging sites will likely be added to ratings lists, as the operator tends to have exclusive occupation of the spaces. This could add up to £300 annually to the charging bill for some consumers if the costs are passed on.

The charging industry argues that the bays should be exempted, given the government’s desire to promote EV adoption to meet its carbon emissions reduction targets. Industry bodies warn the new taxes could force site closures and slow investment, particularly in regions outside of London with lower EV uptake.

Sector and Market Signals

• The UK public charging network has grown rapidly, with 86,000 chargers as of September 2025, an 18% increase from 2024.
• However, slower-than-expected EV sales have put pressure on the charging industry, which is already grappling with high electricity standing charges and VAT.
• The proposed business rate changes come at a challenging time for the sector, potentially adding significant new costs that could undermine the government’s EV adoption goals.

Implications for Private Equity

The potential £100 million bill for the UK charging industry could impact investment and M&A activity in the sector. Private equity firms like GI Partners, which have backed charging infrastructure providers, may need to reevaluate their portfolio strategies and valuations in light of the new business rate burden.

Immediate Outlook

The charging industry is calling for government intervention to remove the “unexpected burden” of business rates, arguing that the bays should be exempted to support EV adoption. The Treasury will need to address this issue in the upcoming budget on November 26th, 2025.

Key Takeaways

• UK charging industry faces potential £100 million bill from new business rate changes on public EV charging bays
• Industry warns changes could force site closures and slow investment, particularly outside of London
• Sector faces multiple cost pressures, including high electricity standing charges and VAT, threatening viability

Sources

• Guardian Business