A £950million scheme to install rapid chargers for electric vehicles could see funds redirected away from the scheme because it failed to make a single grant.
The Rapid Charging Fund (RCF), unveiled by Rishi Sunak in March 2020 when he was Chancellor, could see its money diverted to other charging schemes or broader electric vehicle transition support.
The fund was originally intended to pay for high-power grid connections at remote motorway service stations.
This infrastructure would combat "range anxiety" by enabling the installation of ultra-rapid chargers capable of adding hundreds of miles of charge within minutes.
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The Government has not yet made a decision regarding the future of the funding
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However, not a penny of the £950million fund has been spent since its announcement, prompting fresh concerns.
While a person close to Government discussions claims that no final decisions have been made, several charging companies have suggested the money should be used to support EV charging in alternative ways.
The delays in distributing the funds had raised industry concerns that the money might be cut back or repurposed, especially as Keir Starmer's Government has made controversial cuts to overseas aid and disability benefits budgets.
Competition regulators raised issues that the money could unfairly benefit certain motorway service operators, forcing the Government to reconsider its approach.
Motorway service area operators, who could potentially lose out from any changes, are scheduled to meet with a Transport Minister following Rachel Reeves's Spring Statement this week.
The major motorway services companies that would be affected include Moto, Welcome Break and Roadchef, which are ultimately owned by private equity investors.
Charging companies not benefiting from the fund have argued the money would be better spent elsewhere, The Guardian reported.
Ian Johnston, chief executive of Osprey Charging Network, called the fund "a poor use of taxpayer money, at a time when public funds are so limited".
He said: "Most of the vast rollout of public charging infrastructure, including at motorway service areas, has been funded by private investment. This rollout has surged ahead despite the RCF being significantly delayed."
InstaVolt's chief executive Delvin Lane suggested alternative uses for the money, including reducing public charging VAT from 20 per cent to match the five per cent rate for home chargers, providing electric car purchase subsidies, and cutting energy costs.
A Government source indicated the programme won't be scrapped but needs adjustment to reflect market changes and make the best use of the money.
At present, there are 75,675 charging devices across the UK, with more than 1,000 installed in the last month. The Government and private companies are still hoping that the UK will have 300,000 chargers installed by the end of the decade.
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Public EV chargers attract a VAT rate of 20 per cent, compared to five per cent for home chargers PAA spokesperson for the Department for Transport said: "We want to use taxpayers' money as efficiently as possible to make the transition to electric vehicles a success, and we launched the rapid charging fund pilot to better understand where we should target Government support.
"We will apply learnings from the pilot to continue boosting charging infrastructure on the strategic road network."
