2011 will see electric vehicle grant introduced

An electric vehicle grant of up to £5,000 per vehicle will be introduced from the start of 2011, Transport Secretary Philip Hammond has announced.

However, just £43m has been made available up to the end of March 2012 compared with the last governments plans for £230m.

A decision on whether more money will be provided to extend the scheme beyond 2011/12 will only be confirmed after the spending review.

The Government agreed the announcement of this incentive ahead of the completion of the spending review to support the early market for ultra-low carbon cars.

It will be open to both private and business fleet buyers.

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

“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.