Green light for electric car grants

A promised grant of up to £5,000 towards the cost of an electric or ultra-low carbon car has survived Government cutbacks. The Transport Secretary Philip Hammond yesterday said the funding, first announced by the Labour government, will go ahead from January 2011.

The grant will reduce the cost of new ultra-low carbon vehicles by 25 per cent, capped at £5,000. The incentive has been agreed until the end of March 2012, with the level of grant being reviewed in January 2012.

The Department for Transport said the announcement of the incentive has been made before the completion of the autumn spending review to support the early market for ultra-low carbon cars.

The grant covers electric, plug-in hybrid or hydrogen fuel-cell cars.