Government Gives Green Car Grants The Green Light

Car Finance Calculator

Thu, 29 Jul 2010

Motorists will be able to take advantage of a £5,000 discount on the cost of an electric or ultra-low carbon car from next year after the Government decided against axing the funding as part of its spending cuts.

Transport Secretary Philip Hammond said the £5,000 electric car subsidy, which was first announced by the Labour government last year, will go ahead from January 2011 - just in time for the UK launch of the Nissan Leaf, the first major rival to the globally successful Toyota Prius .

This means that any driver planning on buying a new generation electric car, or ultra-low carbon hybrid, will get 25 per cent off the asking price, up to a maximum £5,000.

However, the government has committed to just £43m of the original £230m promised for programme, which is only enough to fund up to 8,600 cars .

Greenpeace transport campaigner Vicky Wyatt said: " Electric cars are one of the ways we can cut our dependence on oil and move towards a clean, green transport system. That's why it's good news that the government has announced this first chunk of funding."

"But if the government is serious about putting hundreds of thousands more electric cars on Britain's roads, it's vital that Phillip Hammond makes a long-term commitment and stumps up the full £230m, as promised by the previous government."