LONDON, Jan. 6 -- The government of the United Kingdom issued the following news:

* £18millionto slash up to £120,000 off the cost of green lorries, making itcheaperfor businesses to go electric * part of£318 million green freight investment to cut costs for industry and reduce emissions, delivering on the government's promise to boost growth and support jobs * government launches consultation on roadmap to phase out sales of new non-zero emission HGVs, giving industry certainty to plan forzero emission by2040

Hauliersand fleet operatorswillaccess discounts of up to £120,000 on new electric trucksthanks to anadditional£18 millionannounced by the government today (6 January 2026) toincreasethe Plug-in Truck Grant untilMarch 2026.

The move is part of a £318millionplanforgreen freight, which is backing British businessesby slashing upfrontcostson new lorriesand helping businesses to access the lower running costs. This is all part of the government's plan to reduce emissions while cutting costs, sparking growth and creating jobs as the sector moves to the technologyof the future.

See the list of electric and hybrid vehicles eligible for a plug-in grant for more information.

Similar tothe government's Electric Car Grant,which has saved over 45,000 drivers up to £3,750 when making the switch, the Plug-in-Truck Grantenableslorryoperatorstoaccess savings of up to £120,000 when buying a new electric truck.

New grant levels mean:

* smaller trucks(4.25t to 12t)could saveup to£20,000 * mid-sized trucks(12t to 18t)up to£60,000 * larger trucks(18t to 26t) up to£80,000 * and the largest lorries(26t and over)up to£120,000

Minister forAviation, Maritime and Decarbonisation, Keir Mather, said:

We're backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investmentandjobs in the sector.

Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best placefor green investment.

The funding is set toincreasezero emissiontruck salesto support delivery ofthe UK's climate obligations and comes as the government has already investedover£120 million as part of the zero emission heavy goods vehicle (HGV) and infrastructure demonstrator (ZEHID) programme to roll out more zeroemission lorries on UK roads.

Backed by this fund, companies like Amazon and Marks & Spencer have already rolled out more electric delivery trucks on UK roads, withZEHID rolling outnearly 300zero emission HGVs by March 2026.

Day-to-day running costs can already be lower for electric lorries compared to their diesel counterparts,but upfront vehicle costs are typicallyhigher.Theincreaseto the Plug-in Truck Grant will help businesses access those daily savings,cutting costsfor businessesas well as emissions.

John Boumphrey, UK Country Manager, Amazon UK:

Amazon welcomes the government's continued commitment to supporting the electrification of commercial fleets. The UK will be home to the largest number of electric heavy goods trucks in Amazon's global transportation network and the first of our record-breaking order of eHGVs are already on the road.

We're investing to help the UK decarbonise and meet our goal of being net zero carbon by 2040. We look forward to continuing to work with the government to ensure the growth of more sustainable logistics.

Alongsideincreased funding, the governmentwillalsolaunch a consultation on theregulatoryroadmap to phase out sales of newnon-zero emissionHGVs by 2040, giving industry the certainty it needs to invest andplan for the future.

By consulting closely with industry, the government will ensure the road to net zero is one that works for businesses and supports jobs,growthand increased investment.

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