Burnham government sets early agenda for fleets

July 23, 2026

The fleet sector has welcomed the arrival of Prime Minister Andy Burnham and the decision to retain Heidi Alexander as Transport Secretary, with industry leaders calling for greater policy certainty to support investment in electric vehicles and fleet renewal.

Burnham's first major policy announcement, cutting VAT on domestic electricity from 5% to 0% from October, will reduce household energy bills and make home EV charging even cheaper. However, it has also renewed calls to reduce the 20% VAT rate on public charging, with industry bodies warning the gap between drivers with and without off-street parking will continue to widen.

The sector is also urging the new Government to revisit several policies affecting fleet operators, including the proposed electric Vehicle Excise Duty (eVED) changes and the ongoing implementation of the ZEV Mandate. Industry groups argue that reducing the cost of public charging, tackling grid and planning barriers, and providing greater certainty around electrification would accelerate fleet investment.

Alongside EV policy, businesses are seeking action on wider issues including automotive skills shortages, freight strategy and support for commercial vehicle operators.

While welcoming continuity at the Department for Transport, fleet leaders say the industry's priority is now clear: turning stability into practical action that reduces costs, supports electrification and gives businesses the confidence to invest.