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UK Coalition Government confirms incentives for low-carbon cars

UK Transport Secretary Philip Hammond today confirmed that motorists will receive up to £5000 towards the purchase of low-carbon cars from January 2011 onwards.

In the current round of major public spending cuts, there had been doubts over whether the new Government would continue its predecessor’s proposal.

The Government says it is making an exception by confirming the incentive, which covers 25% of the cost of an eligible vehicle up to a maximum of £5000, ahead of its spending review in the autumn.

Initially, the Government will make £43 million available up to the end of March 2012, with the final budget beyond 2011/12 confirmed after the spending review.

“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,” Hammond confirmed.

The announcement should provide some much needed clarity and security for investors making decisions on the launching and manufacturing of low-carbon vehicles.

“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,” says Hammond.

For further information:
www.dft.gov.uk
www.dft.gov.uk/olev

28 July 2010

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