Bid to boost creation of green cars

The Government has revealed plans to expand the low-carbon and electric vehicles industry in a bid to boost the country's ability to manufacture eco-friendly vehicles.

Announcing the plans, transport minister Philip Hammond said the Government intends to offer £24 million funding for subsidies to buyers and grants to manufacturers.

The £24 million package will provide assistance to six projects. These include the creation of new engines for plug-in hybrid versions of Nissan, Lotus and Jaguar Land Rover cars as well as the development of a lightweight, hybrid diesel van.

The plug-in car grant is expected to kick-off in the beginning of next year, offering people financial assistance of up to £5,000 to buy electric, plug-in hybrid or hydrogen-fuelled cars.

The announcement was made before the autumn spending review, which is likely to include public spending cuts of nearly 25%.

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