Electric car incentive escapes cuts

A Government grant worth up to £5,000 will still be given from the beginning of next year to motorists who buy an electric or ultra-low carbon car, it has been announced.

The scheme, which was first announced by Labour, has survived government cutbacks. This means that people who buy new ultra-low carbon vehicles from January 2011 will get a 25% discount up to a maximum £5,000.

Electric, plug-in hybrid or hydrogen fuel cell cars are all covered by the new scheme. Car buyers can take advantage of the incentive until the end of March 2012, while the level of grant will be reviewed in January 2012.

In a bid to back the early market for ultra-low carbon cars, the announcement has been made ahead of the completion of the autumn spending review, according to the Department for Transport.

Transport Secretary Philip Hammond said: "The coalition Government is absolutely committed to low-carbon growth, tackling climate change and making our energy supply more secure.

"We are sending a clear signal that Britain is open for business and that we are committed to greening our economy. This will ensure that the UK is a world leader in low-emission vehicles."

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