Transport
Secretary Philip Hammond confirmed today that motorists will
receive up to £5,000 towards purchase of an ultra-low carbon car
from January 2011.
Exceptionally, the Government has agreed the announcement of this
incentive ahead of the completion of the spending review to
support the early market for ultra-low carbon cars. The Government
remains committed to reducing the UK’s budget deficit, but
understands the need for certainty for investors who are taking
long term decisions now on where to launch ultra low carbon
vehicles and where to locate future production.
The consumer grant will reduce the up-front cost of eligible
vehicles by 25 per cent, capped at £5,000. Available across the
UK, it will be open to both private and business fleet buyers.
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.
“We will review the level of the incentive regularly to ensure
that the UK remains competitive and taxpayers get value for money.
The first review will be in January 2012, at which point we will
set the level for subsequent years.”
Business Minister Mark Prisk said:
“The consumer incentive will help Britain become one of the
leading centres for the design, development and manufacture of
ultra-low carbon vehicles. It sits alongside public and private
sector investment in innovation and infrastructure, leading to the
creation of new highly skilled low carbon jobs.”
Energy and Climate Change Secretary Chris Huhne said:
“Electric and low carbon cars are fun to drive and essential to
meet our climate targets.
"That’s why we’ll need a massive increase in the number
of electric and clean green cars on our roads. Because this is new
technology the Government needs to step in to kick start the
market which is why today’s initiative is vital.”
Notes to editors:
1. The level of the consumer incentive has been agreed until 31
March 2012. The level will be reviewed in January 2012. After
taking into consideration a number of key factors such as the
costs of vehicles and the development of the early market, the
level will then be set for subsequent years.
2. £43m has been made available up to the end of March 2012. The
final budget beyond 2011/12 will be confirmed at the spending review.
3. Any car eligible for subsidy will have demonstrated compliance
against safety and performance criteria. These criteria will be
published shortly at www.dft.gov.uk/olev.
4. The Plugged-In Places initiative is on-going and final funding
will be decided in the spending review.
5. Department for Transport contacts:
Press Enquires: 020 7944 3066
Out of Hours: 020 7944 4292
Public Enquiries: 0300 330 3000
Department for Transport Website: http://www.dft.gov.uk
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Rebecca Murrell
Phone: 020 7215 6403
Rebecca.Murrell@bis.gsi.gov.uk