The Environmental Industries Association (EIA) has issued its response to the Chancellor’s Autumn Budget, highlighting mixed signals for the UK’s environmental ambitions. While the government has pledged significant investment in infrastructure and housing, concerns remain over measures that could slow the transition to cleaner transport.
Electric Vehicles and Air Quality
The Chancellor confirmed a new Electric Vehicle Excise Duty, introducing a 3p-per-mile charge for battery electric cars and 1.5p for plug-in hybrids from April 2028, alongside existing Vehicle Excise Duty. Although intended to address falling fuel duty revenues and fund road maintenance, the Office for Budget Responsibility warns this could result in 440,000 fewer EV sales by 2030, undermining efforts to cut emissions and improve air quality. Environmental campaigners have called the move “premature,” stressing that incentives, not penalties, drive adoption of zero-emission vehicles.
Air pollution remains the UK’s largest environmental health risk, linked to 28,000–36,000 premature deaths annually and costing the NHS an estimated £1.6 billion between 2017 and 2025.
Jim Mills, Chair of EIA’s Air Quality Working Group, said:
“Introducing taxes on electric vehicles without a clear plan to reinvest in clean transport risks reversing decades of progress. Air pollution remains the UK’s most significant environmental threat to public health. Fiscal policy should accelerate—not obstruct—the transition to zero-emission vehicles.
The Environmental Industries Association believes this initiative will do little to address the air quality crisis. It requires urgent reconsideration. With the new vehicle excise duty and now a proposed per-mile charge, running many EVs could soon cost more than operating large diesel cars. That is counterproductive and makes no sense.
Water and Environmental Infrastructure
The Budget aligns with Ofwat’s recently approved £104 billion water infrastructure upgrade, aimed at reducing sewage spills by 50%, building new reservoirs, and improving river health. These measures will enhance resilience against climate change and support biodiversity, while creating thousands of skilled jobs.
Brownfield Remediation and Housing
Government plans to accelerate housing delivery include renewed support for brownfield-first development, backed by remediation funding programmes and tax relief consultations. Unlocking contaminated land for housing could deliver over 1.4 million homes, reducing pressure on greenfield sites and contributing to net-zero goals.
Infrastructure Investment
The Chancellor reaffirmed a £120 billion capital investment commitment for roads, rail, and energy, alongside planning reforms to fast-track nationally significant projects. These steps aim to stimulate growth and modernise the UK’s built environment, with a strong emphasis on decarbonisation and regional development.
Peter Atchison, Chairman of the Environmental Industries Association, said:
“Today’s Budget is a tale of two priorities. On one hand, we welcome the scale of investment in water infrastructure, brownfield regeneration, and housing – these are critical for sustainable growth and environmental protection. On the other, the introduction of a mileage-based tax on electric vehicles risks slowing the UK’s clean transport transition and jeopardising air quality improvements. Government must ensure that fiscal measures do not undermine climate commitments or public health. The EIA stands ready to work with policymakers to deliver joined-up solutions that balance revenue needs with environmental progress.”
Call for Action
The EIA will continue to engage with the government on these matters and continue to campaign to increase funding for green industries and technologies. “We urge the Chancellor to consider the long-term benefits of investing in our environment. Sustainable growth is not just an option; it is a necessity for our future,” Atchison concluded.
For further information, please contact: Environmental Industries Association news@EIAssociation.co.uk