As it builds on its cost cutting drive, the new UK government is said to be considering scrapping the £5,000 discount on all new electric cars which was supposed to be introduced next year.
According to reports in The Guardian, the Department of Business has told car industry executives that the offer is being reviewed.
Without question, if the subsidy is knocked back it would be a substantial blow for the electric car market with the industry already marketing new models on the basis the offer would remain in place. Just yesterday we discussed the cost of electric cars in our latest Green Piece Column, pointing out Nissan’s reliance on the £5,000 discount as it is scheduled to put the LEAF on sale in the UK for £28,350.
The government has already announced that it will close its grant programme for households and firms installing thermal heat pumps and solar panels.
