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The UK’s £300bn+ public procurement market is undergoing its most significant structural shift in a decade. The landscape that is fragmenting, opening up, and increasingly welcoming to new entrants. For international investors, high-growth challengers, and tech-driven service providers, this represents a major moment of opportunity.Below, we unpack the key trends shaping the UK public sector market and what they mean from Larkspur’s strategic perspective. 1. Strategic Suppliers Are Losing Ground- Opening Doors for New EntrantsThe UK Government’s 39 Strategic Suppliers traditionally the gatekeepers to major contracts have seen their market share fall to just 10%, a five-year low. Their revenue has also declined even as overall public procurement grew.This is a clear signal:<ul><li>The UK is deliberately diversifying its supplier base.</li></ul>Government disaggregation, pro-SME policy, and new procurement rules under the Transforming Public Procurement reforms are breaking up historic monopolies. International firms, innovative SMEs, and scale-ups now face fewer structural barriers to entry. Looking to enter or expand in the UK can now compete more effectively against incumbents. Early positioning, market intelligence, and partnership building will be essential. 2. International Firms Are Gaining Share- But the UK Wants More Local InvestmentUK-headquartered suppliers still command the largest share of revenue, but this has fallen from 65% to 61% in five years. European, US, and Canadian suppliers continue to grow their footprint.Two implications matter for Larkspur’s portfolio:<ul><li>The UK is increasingly receptive to international competitors</li></ul>Foreign suppliers are not only welcome, but they are also winning more business than ever.<ul><li>But economic sovereignty concerns are rising</li></ul>Political sentiment is shifting toward the localisation of supply chains and UK job creation, especially in tech, defence, and infrastructure.Larkspur supports organisations in localising operations, establishing UK subsidiaries, forming partnerships, and strengthening supply-chain commitments- now a decisive factor in public sector competitiveness. 3. £41.7bn in Contracts Are Expiring This Parliament- With 2026 as a Breakout YearPerhaps the biggest opportunity:<ul><li>£12.8bn of Strategic Supplier contracts are set to expire in 2026 alone.</li></ul>This is prime territory for Larkspur’s public-sector-focused clients. Challengers that prepare early- mapping buyers, identifying frameworks, and aligning propositions, can displace incumbents for the first time in years.Key hotspots include:<ul><li>Technology and cloud services (DBT to reprocure Microsoft &amp; Azure licences; major shifts toward AI and digital)</li><li>Decarbonisation and energy (large NHS and Local Government estate programmes)</li><li>Major hospital programmes</li><li>MOD procurement, with 10% of equipment spend ring-fenced for novel tech from 2026</li></ul>We specialise in helping international suppliers’ position for UK contracts early, build stakeholder relationships, understand buying cycles, and tailor their market entry for maximum competitiveness. 4. Frameworks Remain the Real Gatekeepers- But They Are Opening Up56% of Strategic Supplier contracts are awarded via frameworks, three times the SME rate. Frameworks can be a barrier, but the report highlights:<ul><li>Only six frameworks account for over £6bn in awards. By targeting the right frameworks, not all frameworks, new entrants can unlock meaningful access to the UK public sector.</li></ul>High-value frameworks include those run by:<ul><li>Crown Commercial Service (CCS)</li><li>NHS Shared Business Services</li><li>Jisc </li><li>Transport and infrastructure consortia</li></ul>We help companies identify, qualify, and join the specific frameworks that align with their growth strategy, especially important for overseas suppliers unfamiliar with UK routes to market. 5. Technology, AI, and Digital Are Underserved- Especially in Local GovernmentCentral Government directs 43% of its Strategic Supplier spend toward technology. Local Government, however, allocates just 9%.That gap is not a lack of demand, it’s a lack of capacity.<ul><li>AI-related procurement is surging (26 contracts last year), but Strategic Suppliers still represent &lt;1% of all AI deals.</li></ul>This means:<ul><li>AI, data, automation, cloud, cybersecurity, and digital transformation markets are largely open to challengers</li><li>Local authorities urgently need tech partners but lack bandwidth and supply chain diversity</li><li>International digital firms have a unique opportunity to become trusted transformation partners</li></ul>We support digital suppliers in UK expansion, identifying buyer pain points, mapping the competitive landscape, and preparing compliant, compelling propositions. 6. Defence, FM, Infrastructure and Decarbonisation Continue to Offer Deep Opportunities<ul><li>Defence</li></ul>Despite political rhetoric, defence spend with Strategic Suppliers has grown only 1.2% CAGR.With MOD committing 10% of its future equipment budget to novel tech, international defence-tech and dual-use innovators have a golden window.<ul><li>Outsourcing and FM</li></ul>Still 50% above pre-pandemic levels and growing at 8.8% CAGR, ideal for suppliers offering estate management, health logistics, security, or soft services.<ul><li>Construction and Engineering</li></ul>Transport remains the biggest spending driver (HS2, Lower Thames Crossing, regional rail). Great opportunities for engineering firms, architects, decarbonisation specialists, and major contractors.We help infrastructure, FM, and defence suppliers understand UK regulatory environments, identify public-sector buyers, and localise delivery models. 7. The Rise of the “Challengers”: New Partnership PathwaysTen major firms now match Strategic Suppliers in revenue without being on the official list. For Larkspur’s smaller or mid-market suppliers, these companies are ideal channel partners, consortium leads, and framework bidders. We support organisations in finding strategic partners, forming consortia, and navigating UK teaming arrangements.8. What This Means for Larkspur Clients: A Market Ripe for Entry, Expansion, and InvestmentAcross all sectors, the UK public sector is signalling a clear message:The era of automatic incumbency is ending.Innovation, international expertise, and agile delivery models are in demand.Larkspur supports- international suppliers, innovators, and investors, to be exceptionally well positioned to capitalise on:<ul><li>Contract expiries in 2026</li><li>Weakening incumbents</li><li>Local Government digital underinvestment</li><li>MOD demand for novel defence tech</li><li>NHS infrastructure and decarbonisation needs</li><li>Increasing openness to international players</li><li>Frameworks that can unlock rapid scale</li></ul> 9. Conclusion: A Strategic Moment for Public Sector GrowthTussell’s 2025 report makes one thing clear:<ul><li>This is the most open, competitive UK public procurement market in a decade.</li></ul>For firms looking to enter, expand or invest in the UK, now is the time to act. And Larkspur International through our expertise in:<ul><li>UK market-entry strategy</li><li>Public sector positioning</li><li>Stakeholder engagement</li><li>Supply chain localisation</li><li>Procurement intelligence</li><li>Partnership and consortium formation</li></ul> Larkspur is ideally placed to help companies convert these insights into winning strategies.

UK Public Procurement Is Shifting

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<h3>If your apps suddenly stopped working today, you weren’t alone, the internet itself had a minor meltdown.From blank social feeds to frozen banking apps, millions of people were left staring at spinning wheels and error screens, wondering what just happened.</h3>Today, for nearly four hours, a significant portion of the internet simply stopped working.At 11:20 UTC a non-malicious traffic anomaly inside Cloudflare’s internal systems triggered a cascade of HTTP 500 errors across its global network. The result was immediate and far-reaching: X (Twitter) feeds went blank, ChatGPT and the OpenAI API became unreachable, Spotify stopped playing, Discord went dark, major banking apps failed, and even real-time public transport information vanished in several cities. Millions of people and thousands of businesses were affected simultaneously because one company- Cloudflare-&nbsp; now sits in front of roughly 20–25 % of all web traffic.Cloudflare is far more than a hosting provider. It is a reverse proxy, content delivery network (CDN), DNS resolver (1.1.1.1), DDoS mitigation platform, web application firewall, and zero-trust gateway rolled into one. For many organisations, from global enterprises to solo developers it has become the default way to make websites fast, secure, and resilient. That efficiency, however, comes at a price: when Cloudflare falters, the blast radius is planetary.This is not the first time we have seen an outage of this magnitude, and it will not be the last.<ul><li>&nbsp;June 2021-&nbsp; Fastly: one invalid customer configuration took down the BBC, Reddit, Amazon, and much of GOV.UK for an hour.</li><li>July 2024- CrowdStrike: a single defective update grounded airlines, closed hospitals, and cost the global economy an estimated $5.4 billion.</li><li>2025- Multiple AWS US-EAST-1 incidents, including October 2025, routinely disrupt Netflix, Slack, Robinhood, and Disney+.</li></ul>Each incident shares the same root pattern: centralisation converts a local software bug, traffic spike, or certificate error into a global crisis.The economics are compelling. Building your own global CDN, DDoS protection, and zero-trust platform is prohibitively expensive, so organisations understandably consolidate onto a handful of superbly engineered providers. Those providers deliver extraordinary performance and security at a fraction of the cost of doing it yourself. The unintended consequence is that the internet’s failure domains have quietly consolidated into a small number of companies. When any one of them has a bad day, the world feels it.True resilience now requires deliberate architectural choices that most organisations currently avoid because they add complexity and cost:<ul><li>Multi-CDN routing with automatic failover</li><li>Diversified authoritative DNS across unrelated providers</li><li>Rigorous chaos engineering and regular “game day” exercises at global scale</li><li>Progressive adoption of decentralised edge alternatives (IPFS, Fleek, Fly.io, etc.) for non-critical workloads</li><li>Large enterprises and hyperscalers already implement many of these measures; most mid-sized and smaller organisations do not, often because the short-term savings of single-vendor reliance are simply too attractive.</li></ul>At Larkspur International we have worked with partners to help design systems that remain available even when a major third-party provider fails. That work has never felt more relevant than it does today.The internet was originally designed to route around damage. Somewhere along the way we rebuilt it to route through a handful of indispensable gatekeepers. Outages like today’s are not aberrations- they are the predictable consequence of the architecture we have collectively chosen.The good news is that the fixes are known, tested, and increasingly affordable. The difficult part is making the deliberate decision to invest in resilience rather than continuing to enjoy the convenience and cost advantages of centralisation, until the next global outage forces the issue.If today affected your organisation and you would like to explore practical ways to reduce single-provider risk without sacrificing performance or breaking the budget, please feel free to send us a message. We are always happy to share what we have learned.Stay safe online.

Why the Internet Keeps Breaking and What Comes Next

<figure id="figure-1yfuwkk95jmgs5849x"><img id="1yfuwkk95jmgs5849x" src="https://cdn.durable.co/covers/f8A2T3l9sfOjHQqidAJF5MGVCLCHcgN36Mr3WH3oDdBjtyRlOo3ZDmFgnc8VnqjO.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/f8A2T3l9sfOjHQqidAJF5MGVCLCHcgN36Mr3WH3oDdBjtyRlOo3ZDmFgnc8VnqjO.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure> The UK has one of the clearest cases in the world for health innovation. Frontier Economics has quantified the ambition: up to £278 billion in gains through productivity, NHS efficiency, and foreign direct investment. Ministers back the vision. The business case is airtight. And yet, despite all the evidence and support, little has materialised. The real tragedy isn’t just economic. It’s human. Innovations like digital cardiovascular tools, early cancer diagnostics, and AI-driven imaging are not luxuries they are lifelines. Every year of delay means thousands of patients go without treatments that could return them to work, prolong their lives, or ease the burden on families and caregivers. The cost of inaction is not only GDP lost but lives diminished. Why Haven’t We Delivered?<ul style=""><li>Fragmented decision-making. Innovation adoption is scattered across NHS trusts, regulators, and local health systems. Everyone has a say, but no one has final accountability. </li><li>Short-termism. Treasury accounting rewards savings on a one-year horizon. Spending £1 today for £5 in three years is politically unattractive. </li><li>Procurement culture. NHS procurement is designed to minimise risk, not to maximise value. SMEs with novel solutions face prohibitive hurdles. </li><li>Political distraction. Ministers know the rhetoric but are consumed by waiting lists, strikes, and winter crises. Innovation, lacking a “photo-op,” slips down the agenda. </li><li>Investor conservatism. And this, perhaps, is the most corrosive. &nbsp; Sidebar: Why Capital Flows West UK and European investors are chronically cautious. Pension funds in the UK and Ireland allocate just 0.007 % of assets to venture capital versus 15 % in North America. Across Europe, the figure is only 0.024 %. In the U.S., pension funds supply around 70 % of VC capital, compared to 10 % in the UK. The result? Growth-stage health tech ventures born in Britain but starved of domestic funding head to Nasdaq or U.S. private equity to scale. For patients, this means innovations are often commercialised and deployed in American hospitals before they are available in the NHS. The UK funds the science; U.S. patients reap the benefits. &nbsp; The Consequences We’ve already seen what happens when investment falters. AstraZeneca cancelled a £450 million UK vaccine facility after delayed government backing, pivoting to U.S. and Chinese sites instead. There is even talk of a U.S. stock-market listing a devastating blow to London’s financial reputation. Meanwhile, British biotech IPOs on the LSE have all but dried up, even as Nasdaq welcomes UK-born firms. </li></ul>This isn’t just about losing companies. It’s about losing time for patients. When the capital and confidence flow overseas, the deployment of life-saving technologies stalls at home. Patients wait longer. NHS staff operate with outdated tools. And the UK forfeits both the health and the economic dividend. What Must Change<ul><li>Shift Treasury rules. Count multi-year innovation savings as current-year value. Investment should be judged by long-term ROI, not the next fiscal cycle.</li><li>Redesign procurement. Focus on outcomes and value, not just lowest cost. SMEs should have a path to compete.</li><li>Build domestic risk capital. Mobilise UK pension funds and institutional investors to allocate meaningfully to VC, with government de-risking mechanisms if necessary. </li><li>Anchor flagship firms. Support AstraZeneca and others to keep their R&amp;D and listings in Britain. </li><li>Brand health innovation as an investment story. Market the £32 billion FDI opportunity to global investors, but with proof of domestic adoption to back it up. </li></ul>The Bottom Line The UK has the data, the endorsements, and the talent. What it lacks is delivery. Until we confront the culture of risk aversion in government, in procurement, and in capital markets the £278 billion prize will remain just that: a promise. And patients, the very people this innovation is meant to serve, will continue to pay the highest price. &nbsp; &nbsp;References&nbsp; Health Innovation Network. (2025). The Prize That Slipped Away: Rethinking the Worth of Health Innovation. In Defining the size of the health innovation prize (pp. 4–8). Frontier Economics. The Health Innovation Network. https://cdn.thehealthinnovationnetwork.co.uk/wp-content/uploads/2025/06/Defining-the-Size-of-the-Health-Innovation-Prize-report.pdf

The Prize That Slipped Away: Rethinking The Worth of Health Innovation

<h2>Pragmatism is back in fashion&nbsp; &nbsp;</h2><figure id="figure-jsy4yshvnrmgfe912q"><img id="jsy4yshvnrmgfe912q" src="https://cdn.durable.co/blocks/2csHkzGEEGj6MOhYJthe7H3src0WxlETuLaGHmMRAZDLQJ05DMZ0s9pb4956skuN.jpg" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 1/1; object-position: center center;" data-corners="default" data-aspect="1:1" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/2csHkzGEEGj6MOhYJthe7H3src0WxlETuLaGHmMRAZDLQJ05DMZ0s9pb4956skuN.jpg" data-mce-style="aspect-ratio: 1/1; object-position: center center;"></figure>&nbsp; This year’s Conservative Party Conference carried a notably different mood less noise, more reflection. Beneath the surface speeches and security lines, you could sense a party attempting to rebuild trust with its traditional allies: small businesses, women leaders, and the wider economy that drives them. &nbsp; <h2> </h2><h2>Women, ambition, and the honesty gap &nbsp; </h2>In the Women in Business Empowerment session, Shadow Minister for Women and Shadow Secretary of State for Wales Mims Davies didn’t shy away from the real trade-offs women face from single parenting and career progression to the unspoken cost of networking and wellbeing. The message was refreshingly grounded: gender equality isn’t about token rooms; it’s about creating mixed rooms that matter. She called for the Conservative Party to rediscover its voice on entrepreneurship, aspiration, and social mobility and to speak honestly about the energy and financial pressures that hold women and families back. &nbsp; <h2> </h2><h2>The economy: from corporatism to competitiveness &nbsp; </h2>In the HR and Economic Policy discussion with the Shadow Chancellor of the Exchequer Mel Stride, the theme was strikingly consistent, small and medium businesses have been forgotten. Speakers from the floor called for less corporatism, less red tape, and more direct support for entrepreneurs navigating compliance, regulation, and taxation. The tone was frank: the UK must rediscover its appetite for risk and reward. The Shadow Chancellor was clear that there is no silver bullet, and we are in a whirlwind of challenges which need to be navigated with a steady hand. Are we ready to pivot - I ask? We are not there yet. &nbsp; &nbsp; <h2> </h2><h2>Defence and direction &nbsp; </h2>With the Shadow Secretary of State for Defence James Cartlidge, conversation turned to security and spending but the undertone was strategic: how can Britain remain globally credible while investing in innovation and industrial resilience? Many in the room argued that our greatest strength lies in supporting the industries that underpin national capability from advanced manufacturing to emerging defence tech. &nbsp; <h2> </h2><h2>Energy and the politics of realism &nbsp; </h2>By the time the Shadow Secretary of State for Energy Security and Net Zero and Minister for Equalities Claire Coutinho took the stage in the Energy Strategy session, the day’s themes had converged: practicality, affordability, and growth. Her approach to Net Zero was notably pragmatic less ideology, more implementation. She stressed that decarbonisation should not come at the expense of competitiveness or consumer choice. Electricity costs, over-regulation, and misplaced subsidies were highlighted as barriers not just to innovation, but to public trust. When asked about EV infrastructure and investor confidence, the response was telling government should focus on enabling infrastructure not mandating behaviour. &nbsp; <h2> </h2><h2>A lunch with Lord Sharpe: candour over ceremony &nbsp; </h2>Over lunch, the Shadow Minister for Business and Trade Lord Sharpe spoke with unfiltered honesty about bureaucracy, regulation, and political inertia.&nbsp; &nbsp; The most quoted moment of the day came from the leader’s speech later on: &nbsp; "Any self-respecting sovereign nation should be able to answer these five questions with a clear yes: · &nbsp;Can we deport foreign criminals? · &nbsp;Can we protect our veterans? · &nbsp;Can we put British citizens first for housing and public services? · &nbsp;Can we stop protests from intimidating the public? · &nbsp;Can we end the red tape choking growth?” &nbsp; <h2> </h2><h2>Takeaway: pragmatism is back in fashion &nbsp; </h2>The mood across sessions was sober but not defeated. What emerged was a cross-sector recognition that business, government, and policy need to work with each other not in isolation. &nbsp; For Larkspur, that’s precisely where we operate: between purpose and practicality. <ul><li>Connecting ambition to policy.</li><li>Translating political moments into business strategy.</li><li>And turning conference conversations into measurable outcomes. &nbsp; If this conference was about anything, it was about remembering that growth doesn’t come from headlines, it comes from people willing to do the work. </li></ul>

Pragmatism is back in fashion- Conservative Party Conference 2025

<h2>Like the old track says, “Music is the answer to your problems.”</h2><h2>Except this time, the refrain was different: “Patriotism is the answer.”</h2> It set the tone for the government’s conference. Not loud, not defiant but quietly confident. The mood across the rooms was one of stability, hope, and realism. People smiled more than they argued. The atmosphere was warm but serious: the sense that, perhaps, we’ve all had enough of crisis talk and just want to get on with it.And that word delivery echoed through almost every session. <h2>Grounded Promises, Not Just Slogans</h2>What was refreshing was how clear the government tried to be on what “delivery” actually means. There was no shortage of ambition but this year, ambition came in practical form.&nbsp; &nbsp; • &nbsp; &nbsp;On Immigration and Borders: Stronger deportation powers for foreign offenders. A promise to fix the legal tangle around asylum backlogs. A push to reassert control over borders and to challenge the ECHR constraints that have slowed the process for years.It wasn’t about slogans: it was about mechanics, systems, and timelines. That felt new.&nbsp; &nbsp; • &nbsp; &nbsp;On Veterans and Public Services: Commitments to protect veterans from endless legal harassment. A pledge to prioritise British citizens for housing and social services. And a reminder that the NHS despite the pressures remains a national priority, with new funding pathways expected to unlock before the spring.&nbsp; &nbsp; • &nbsp; &nbsp;On the Economy and Growth: Ministers repeated that growth can’t come from slogans, only structure:<ul><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul style="list-style-type: circle;" data-mce-style="list-style-type: circle;"><li>fewer layers of regulation, simpler tax reliefs for small businesses, and genuine devolution so local governments can act fast.</li><li>The “patriotism” they talked about wasn’t performative, it was about rebuilding national capacity to deliver.</li></ul></li></ul></li></ul></li></ul><h2>The Tone: Warm, Focused, and a Little Wiser</h2>If you’ve attended enough conferences, you know when a room feels tense and when it feels purposeful. This year, the difference was palpable. The conversations weren’t about blame, they were about fixing. You could sense that people, ministers, members, delegates had stopped waiting for someone else to act.Even the way issues like the NHS and immigration were discussed felt more mature. No denial, no grandstanding. Just a shared understanding that people are tired of hearing “plans” that never materialise.One delegate said quietly during coffee, “Patriotism’s fine, but people want proof.”That summed up the whole mood.<h2>Delivery Is the New Devotion</h2>Keir Starmer’s tone was disciplined, pragmatic, sometimes even cautious. But the government’s answer now is to meet that same terrain head-on, with conviction rather than contrast.They know that speeches will no longer win votes, delivery will.From faster planning decisions and small business incentives to housing reform and local energy investment, the emphasis has shifted from policy to proof.And that’s where the next test lies, not in whether people agree, but whether they can see and feel results before they’re asked to vote again.<h2>A Note on Mood</h2>If you stepped back and looked at the bigger picture, you could say this: the conference didn’t feel defensive. It felt determined. Delegates spoke with clarity. Ministers smiled but didn’t overpromise. And beneath the soundbites, there was one quiet, shared thought: that the UK needs less chaos and more competence.Patriotism might be the slogan, but the subtext was clear:Delivery is devotion. And that’s where trust will be rebuilt.

“Patriotism Is the Answer”- But Delivery Will Tell- Labour Party Conference 2025

electric car charging with modern EV charger. EV charger is mounted on the wall

This report provides a comprehensive overview of the most recent and impactful electric vehicle (EV) and energy subsidy programmes in the United Kingdom and across Europe. It highlights recent policy changes, strategic funding opportunities, and the implications for buyers, fleets, and infrastructure developers.<figure id="figure-24luf45fg1mfzboj1p"><img id="24luf45fg1mfzboj1p" src="https://cdn.durable.co/blocks/2dI7DiuGYw587YDDvWbpvnqj0AhBkIxw6zH436peu1quIFbprlZdQ3OP5H70WdlS.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/2dI7DiuGYw587YDDvWbpvnqj0AhBkIxw6zH436peu1quIFbprlZdQ3OP5H70WdlS.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>Key findings include:</h2><ul><li>The UK has reintroduced a national EV grant programme in July 2025, worth £650m, offering up to £3,750 for qualifying vehicles.</li><li>EU-level climate and infrastructure packages continue to underpin national subsidies and charging deployment.</li><li>Major markets such as Germany, France, and Spain have seen important shifts in subsidy availability, with Germany moving toward tax incentives, France restructuring its ecological bonus, and Spain continuing the MOVES scheme.</li><li>Subsidy availability is often budget-limited and region-specific, requiring close monitoring for timely applications.&nbsp;</li></ul><h2>United Kingdom: EV Subsidy Landscape</h2> 1. Reintroduced EV Purchase Grant (July 2025):<ul><li>A £650 million scheme offers up to £3,750 off new battery-electric vehicles (BEVs) priced below ~£37,000.</li><li>This represents a significant policy reversal, reinstating direct purchase incentives after their 2022 removal.</li></ul> 2. Charging Infrastructure Grants:<ul><li>Home and renter/flat-owner ChargePoint grants continue.</li><li>The Depot Charging Scheme provides up to 75% of costs for commercial fleet charging infrastructure.</li><li>On-street residential schemes remain active via local authorities.</li></ul> 3. Tax Incentives and Salary Sacrifice:<ul><li>Company car tax (benefit-in-kind) rates remain very favourable for EVs.</li><li>Salary sacrifice schemes increase affordability through payroll tax efficiencies.</li></ul><h2>European Union: Policy and Funding Frameworks </h2>At the EU level, several overarching frameworks shape national subsidy regimes:<ul><li>Fit for 55: Establishes emissions reduction pathways, including road transport.</li><li>Alternative Fuels Infrastructure Regulation (AFIR): Mandates charging station density across TEN-T corridors.</li><li>EU Funds: Connecting Europe Facility (CEF), Recovery and Resilience Facility, and cohesion funds finance charging and energy infrastructure projects. </li></ul><h2>Key National Programmes in Europe </h2>Germany<ul><li>The Umwelt bonus purchase subsidy has been phased out as of late 2023.</li><li>Support now centres on tax relief, including reduced company car tax and accelerated depreciation.</li><li>Proposals for new targeted incentives are under discussion but constrained by fiscal limits.</li></ul> France<ul><li>The “bonus écologique” was restructured in July 2025, shifting support toward energy efficiency and conversion schemes.</li><li>The “prime à la conversion” remains available, supporting trade-in of older vehicles for low-emission models.</li><li>Infrastructure funding continues alongside national green industrial policies.</li></ul> Spain<ul><li>The MOVES III programme continues into 2025 with a €400 million budget.</li><li>Subsidies support both EV purchases and charging infrastructure installation.</li><li>Availability depends on regional budgets, with some autonomous communities already exhausting allocations.</li></ul> <h2>Strategic Implications </h2>For Buyers:<ul><li>Substantial savings remain possible, especially in the UK, Spain, and select EU countries.</li><li>Monitoring scheme eligibility and budget windows is critical.</li></ul> For Fleets and Infrastructure Developers:<ul><li>Depot and workplace charging grants provide significant cost offsets.</li><li>EU and national funding streams can support large-scale deployment projects.</li></ul> For Investors:<ul><li>Policy volatility (e.g., Germany’s subsidy withdrawal, France’s restructuring) underscores the need for adaptive strategies.</li><li>Long-term tax incentives remain more stable than purchase grants. </li></ul>

EV and Energy Subsidy Landscape 2025

Larkspur International

Where Government Meets Business Growth
Larkspur International operates at the intersection of business and government where decisions are shaped, risks emerge, and opportunities are realised.

Larkspur International is a business consultancy with a growth mindset working alongside clients to navigate government systems, eliminate barriers, and deliver measurable commercial outcomes.

INSIGHTS

UK Public Procurement Is Shifting

Why the Internet Keeps Breaking and What Comes Next

The Prize That Slipped Away: Rethinking The Worth of Heal...

Pragmatism is back in fashion- Conservative Party Confere...

“Patriotism Is the Answer”- But Delivery Will Tell- Labou...

EV and Energy Subsidy Landscape 2025