Government to Offer Electric Car Subsidies

Business secretary Peter Mandelson and transport secretary Geoff Hoon have given details of the government’s vision to promote ultra low carbon transport – in other words electric cars – over the next five years. This involves a headline subsidy for consumers worth £2000 – £5000 towards buying their first electric and plug-in hybrid cars when they hit the showrooms.

The consumer incentives will be introduced in 2011 to coincide with when the government expects electric and plug in hybrid cars to enter the mass market. To be eligible cars would need to meet modern safety standards and have a range and top speed sufficient to give mass market appeal.

Transport Secretary Geoff Hoon said: “Cutting road transport CO2 emissions is a key element to tackling climate change. Less than 0.1 per cent of the UK’s 26 million cars are electric, so there is a huge untapped potential to reduce emissions. The scale of incentives we’re announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low carbon transport.2

The strategy also includes plans to provide £20 million for charging points and related infrastructure to help develop a network of ‘electric car cities’ throughout the UK and an expansion of an electric and ultra-low carbon car demonstration project on the UK’s roads. This project will mean over 200 motorists throughout the country will have the opportunity to drive a cutting-edge car and feedback the information needed to make greener motoring an everyday reality.