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As readers are doubtless already aware, the push towards ‘green’ energy and investments has been a major trend in recent years. Despite facing recent challenges in the US, largely due to the often-hostile attitude of the Trump administration and Republican lawmakers towards such initiatives, the growth of ESG remains powerful within Europe and the UK.
On the frontline of this growth, one of the key aspects of the journey has been electric vehicle ownership. Taking a look at some statistics in relation to the UK’s relationship with the electric vehicle market will prove useful.
As of 2025, there are approximately 2.5 million electric vehicles in use (out of approximately 40 million vehicles in the UK on the whole). However, this does include hybrid vehicles (which combine both petrol and electric, with owners often having the choice to select which fuel source they are using at any given time) – for battery-only electric vehicles, the number drops to around 1.5 million cars. This, in short, represents approximately 4-5% of the market (back in 2021, this comparable statistic sat at just 1% of the market – growth has therefore been enormous).
The Conservative government had, for a sustained period of time, been considering a scheme whereby electric vehicle ownership would be incentivised by various subsidies. However, in 2022, it was announced that this scheme would be scrapped – the argument being that the market had matured enough independently to not require further stimuli (which costs a substantial amount of money) from Westminster.
Industry representatives were generally unhappy with this announcement, and have lobbied for the new Labour government to reconsider, which has now proved fruitful. Labour’s transport secretary Heidi Alexander recently said on the record that she wanted it to become ‘easier and cheaper’ to purchase electric vehicles in the UK, and reintroducing the idea of a subsidy was a natural progression from that position (though not the only such announcement – for example, a large investment of £63 million into car charger installations is also now in development).
The crux of the scheme is this – householders receive discounts (subsidies from the government) on the purchase of new electric cars.
Individual car models are sorted into different categories based on how environmentally friendly they are perceived as being (though the exact criteria being applied here is, naturally, somewhat up for debate). In the highest category, the maximum discount that may be offered is £3,750.
It is worth noting, crucially, that the subsidy only applies if the vehicle (a new electric car) is priced below £37,000. This is quite significant given the fact that the average price for a new electric car in the UK is currently £49,000 – meaning the majority of electric vehicles will not fall under this scheme. ‘Luxury’ offerings like the Tesla Model Y will therefore miss out, but more budget-friendly options like the Nissan Leaf are expected to make the cut.
The major concern among the carmakers at the moment is confusion around how the vehicles will be assigned to each category. Company officials say that the process is somewhat opaque, and that they are being asked to complete application forms for government approval without understanding the full picture. Some sources suggest that certain companies have set up teams tasked specifically with predicting which of their models will fall under which category.
In response, the government has stated that it is in regular communications with car manufacturing companies around eligibility for the scheme, and will go ahead with scheduling various ‘roundtable’ discussions at which manufacturers can ask for clarification on the rules.
Another concern is the fact that the scheme only covers new cars rather than second-hand ones. The majority of vehicles purchased in the UK are second-hand – according to recent research, consumers are three times more likely to buy used than new. The main reason for this is cost – which is ironic, since the EV scheme outlined above was pitched as assisting those who would not be buying ‘luxury’ EVs – in reality, most potential EV buyers on a budget will not be looking at brand new cars. Another concern here is the fact that the scheme is designed (at least in part) to support the wider ESG mission to lower emission and reduce the environmental impact of vehicles – in reality, encouraging the purchase of new cars (whether electric or not) rather than the resale of older vehicles does not align with that goal.
There are a number of considerations here which the lawyers of the future (whether solicitors or barristers) applying to opportunities like training contracts or vacation schemes could go away and analyse. These could form fruitful starting points for discussions at interview, for example. Some of these are explicitly legal, while others are more generally ‘commercial’, with the latter being increasingly important for lawyers working primarily with corporates (such as those at Magic Circle or elite US firms).
The most obvious and important aspect of this story is undoubtedly the ESG angle – encouraging the production of electric vehicles. This is a growing area within law firms, and in contexts such as these will often be covered by those working within practice areas like renewable energy (sometimes a distinct practice area, sometimes grouped into something like ‘energy law’ more broadly, or adjacent terms like ‘projects’ or ‘infrastructure’).
Another relevant aspect to this story could be a public law angle – analysing the relationship between the government and corporate bodies in contexts such as these. For example, imagine if your client was a car manufacturer who wanted to challenge the government’s decision not to award it with a subsidy under the new scheme – a judicial review case could be on the horizon. Outside of going straight to court, though, lawyers should consider how to foster good relationships between these parties (and avoid the need for litigation altogether), such as through the roundtable discussions that the government are proposing in order to alleviate concerns about this scheme.
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