Motorists will be offered grants up to £5,000 towards the cost of a new ‘ultra-low carbon car’, the Government has confirmed.
Set to be introduced in January 2011, the new grants will eligible against the purchase of a new range of plug-in hybrid and electric cars. Similar in form to the soon-to-expire Government scrappage scheme, the new ‘Plug-in Car Grant’ will provide a discount against new electric, hybrid, hydrogen fuel cell and range-extended vehicles of 25 per cent off the recommended retail price. Capped at a maximum grant of £5000, cars will be discounted at the point of purchase and subsidy claimed back by the manufacturer.
The £230 million fund for the scheme is part of the ‘Ultra Low-Carbon Vehicles in the UK ‘ strategy with plans to introduce the grants first announced as part of the 2009 Budget. Today, however it is confirmed that the Government will go ahead with plans to introduce the grants in 2011, when it is hoped that many of the eligible vehicles will become available.
A further £30m initiative- called Plugged-In Places – will pay for the roll-out of a network of electric vehicle charging hubs. The fund will see charging infrastructure appearing in car parks, major supermarkets, leisure and retail centres, as well as on the street. The first Plugged-In Places were today named today as London, Milton Keynes and the North East; and between them they will be installing over 11,000 vehicle recharging points during the next three years.
These initiatives are part of a wider £450 million fund to support the creation of a flourishing early market for ultra-low carbon vehicles.
Transport Secretary Andrew Adonis said:”Decarbonising transport isn’t an aspiration – it’s a reality. By this time next year, cutting edge motorists will be on the roads with these next generation cars they’ve purchased because of our help.
“And thanks to the Plugged-In Places we will have in place infrastructure to support this growing early market.
“Transport has a huge part to play in helping the UK meet its stringent emission reduction targets and today’s announcement is another step on the road to putting the UK at the global forefront of ultra-low carbon vehicle development, manufacture and use.”
Business minister Pat McFadden said:”Low Carbon vehicles are an important part of the broader shift to a low carbon economy.
“We have already committed £450m to delivering our ambitious vision of supporting suppliers of low carbon technology, encouraging demand from consumers and enabling lead UK cities and regions to switch on charging infrastructure.
“The Government is focusing on this sector as a priority and we are committed to helping British businesses take advantage of the growth potential and job opportunities this presents.”
The Plug-in Car Grants will be open to both private and business fleet buyers. To be eligible for the scheme, cars will have to pass performance criteria to ensure safety, range, and ultra-low tailpipe emissions.
The Plugged-In Places will provide the charge points to support these vehicles
A second competition for Plugged-in Places funding is to follow later in the year, with consortia from the West Midlands, Cornwall, Sheffield, the Lake District, Greater Manchester and Northern Ireland having already confirmed their intention to bid for the next wave of funding.
