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Coalition sticks by electric vehicle subsidy

28 July 2010

Transport Secretary Philip Hammond (pictured) has confirmed that motorists will receive up to £5,000 towards the purchase of an ultra-low carbon car from January 2011. This incentive was announced by the previous government back in February. The Government has agreed to honour this incentive ahead of the completion of the spending review to support the early market for ultra-low carbon cars. While it remains committed to reducing the UK’s budget deficit, the government says it understands the need for certainty for investors who are taking long term decisions now on where to launch ultra low carbon vehicles and where to locate future production.

The consumer grant will reduce the up-front cost of eligible vehicles by 25 per cent, capped at £5,000. Available across the UK, it will be open to both private and business fleet buyers.
Transport Secretary Philip Hammond said that the government was sending a clear signal that Britain is open for business and that it is committed to greening its economy.

“We will review the level of the incentive regularly to ensure that the UK remains competitive and taxpayers get value for money. The first review will be in January 2012, at which point we will set the level for subsequent years.”

At the same time, six successful bidders will share £660,000 match funding from the Department for Business Innovation and Skills for gas refuelling or electric vehicle charging infrastructure projects.

A private business in Essex, three councils across Yorkshire and the West Midlands, a public body co-ordinating transport in Merseyside and a community group on the Isle of Lewis are all winners in the latest round of support from the Alternative Fuels Infrastructure Grant Programme.

The six new projects will install infrastructure to support public and private sector fleets in trialling a wide range of natural gas, bio-gas and electric vehicles including buses, HGVs, and refuse collection vehicles. The projects offer the potential for fleet users to demonstrate cost and carbon savings as well as making significant local air quality improvements. 


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