£500 million to get more drivers into
ultra low emission vehicles.
The
government will invest £500 million to boost the ultra low emission
vehicle industry and help drivers both afford and feel confident using electric
cars, the Deputy Prime Minister announced today.
The
automotive sector is a success story of the UK’s economic recovery, with
a new vehicle rolling off a UK production line every 20 seconds and the
industry is worth £11.2 billion to the economy. The production of ultra
low emissions vehicles (ULEV) is a major part of growth both now and for the
future.
The
investment of £500 million between 2015 and 2020 will create jobs, reduce
emissions and set the agenda for the industry, for our towns and cities, and
for motorists, so that Britain remains at the forefront of green
technology.
£500 million investment
The
investment will:
Create ‘Ultra Low City
Status’
Local areas coming up with the most ambitious plans can
win a share of £35 million to make the leap to becoming ultra low.
Winning cities could, for example, incentivise drivers of green cars by letting
them use bus lanes or allowing them to park for free. Additional funding of
£50 million will also be available for local areas to invest in cleaner
taxis and buses.
Create jobs and innovate
We
will invest £100 million in research and development in ULEV to
cement the UK’s position as a leader in the development of these
technologies. The UK’s automotive industry has undergone a renaissance in
recent years and we have the potential to emerge as a world leader in the
development, design and manufacture of green vehicles. This investment will
help create skilled British jobs and have further positive impact down the
supply chain.
End
‘range anxiety’
£32 million funding boost for charging
infrastructure including plans to install rapid chargepoints across the
‘M’ and ‘A’ road network by 2020 so that drivers can
find a rapid chargepoint when they need one. Rapid chargepoints mean that a car
can be charged in as little as 20 minutes.
Save consumers money
To
encourage more people to use ULEV, car grants of £5,000 off the
upfront cost will be extended. This is worth at least £200
million.
The
Deputy Prime Minister visited the Transport Research Laboratory in Wokingham
with Chief Secretary to the Treasury Danny Alexander to see how green cars are
tested and to speak to industry leaders.
Nick Clegg, Deputy Prime Minister,
said:
Our
economy is growing thanks to sectors like our thriving automotive industry that
are helping repair and rebalance the economy, building a fairer society for
this generation and the next.
The
UK has the potential to emerge as a world leader in the development, design and
manufacture of green vehicles.
Owning an electric car is no longer a dream or an
inconvenience. Manufacturers are turning to this new technology to help
motorists make their every day journeys green and clean.
This major investment is there to make driving an
electric car affordable, convenient, and free from anxiety about the battery
running out. But it’s also about creating a culture change in our towns
and cities so that driving a greener vehicle is a no-brainer for most
drivers.
Drivers pay no road tax or congestion charge
on ULEV. The average journey made by motorists is just 7 miles, with the
typical range of a pure electric car being around 100 miles. For the longer
journeys, there will be a rapid chargepoint (20 minutes to charge up) at every
motorway service station by the end of 2014, and a network of 500 rapid
chargers across the country by March 2015 – the best network in
Europe.
Danny Alexander, Chief Secretary to the Treasury,
said:
Our
economic plan is delivering a growing economy, rising employment and making
Britain a more attractive place to invest. But there is still a large amount to
do to ensure our recovery is sustainable and prosperity is
secure.
That is why it’s right that we squeeze spending
elsewhere to invest in the interests of the future.
Ultra low emission vehicles bring together our most
successful manufacturing sectors with our biggest long-term challenge –
climate change. Britain can be the leading country in the world in developing,
manufacturing and using ULEV. This half billion pound government
investment will help to ensure we rise to the challenge.
To
help interested drivers to find out more about what ULEVs could offer them, the
Deputy Prime Minister launched the Go Ultra
Low campaign in January. Backed by 5 major car companies, Go Ultra Low
provides clear answers about the vehicles and how to use and charge
them.
In
2013 government announced it would be speaking with industry, academics and
other experts on how £500 million might be put to best use in helping
this rapidly developing market pick up pace. Today’s announcement is the
result of that consultation.
We
are also working on other elements of support, including the support for
hydrogen fuel cell vehicles and expect to publish further details later in the
year. The allocations announced today allow for flexibility to respond to a
changing market.
Full details of each scheme will be published by autumn
2014, with some of the schemes opening for applications shortly
thereafter.