The Government has announced a 25% discount off the price of ultra-low carbon cars, up to a maximum limit of £5,000.
It will release the grant from January 2011, when a range of vehicles fitting the description are expected to be available.
Both private and business fleet buyers will be allowed to avail themselves of the new grant, but only cars passing performance criteria - ensuring safety, range and ultra-low exhaust emissions - will be eligible for the scheme.
Another announcement from the Government involved a £30 million fund for a network of electric vehicle hubs, dubbed Plugged-In Places, to set up charging infrastructure in car parks, major supermarkets, leisure and retail centres as well as on the street.
More than eleven thousand vehicle recharging points will be installed over the next three years, with London, Milton Keynes in Buckinghamshire and north-east England named as the first Plugged-In Places.
Part of a £450 million strategy, the initiatives will boost the creation of a thriving early market for ultra-low carbon vehicles.
The UK aims to reduce carbon emissions from transport, while creating new opportunities for firms based in the country in the automotive and charging infrastructure sectors.
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