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Green car subsidy plan unveiled Green car subsidy plan unveiled
(about 1 hour later)
Motorists will be offered subsidies of up to £5,000 to encourage them to buy electric and hybrid cars under plans announced by the government.Motorists will be offered subsidies of up to £5,000 to encourage them to buy electric and hybrid cars under plans announced by the government.
It is part of the government's £250m plan to promote low carbon transport over the next five years.It is part of the government's £250m plan to promote low carbon transport over the next five years.
But ministers do not expect the cars to hit the showrooms until 2011.But ministers do not expect the cars to hit the showrooms until 2011.
Meanwhile, Chancellor Alistair Darling is expected to reveal an incentive scheme for motorists to trade old cars in for new ones in next week's Budget.Meanwhile, Chancellor Alistair Darling is expected to reveal an incentive scheme for motorists to trade old cars in for new ones in next week's Budget.
'Untapped potential'
"Less than 0.1% of the UK's 26 million cars are electric, so there is a huge untapped potential to reduce emissions," said Transport Secretary Geoff Hoon."Less than 0.1% of the UK's 26 million cars are electric, so there is a huge untapped potential to reduce emissions," said Transport Secretary Geoff Hoon.
The strategy also includes plans to provide £20m for charging points and other necessary infrastructure.The strategy also includes plans to provide £20m for charging points and other necessary infrastructure.
At present there is little infrastructure in place to support the recharging that such cars need.
The available funding would only be for electric and plug-in hybrids (part petrol, part electric) and, as such, currently commercially available hybrids, such as the Toyota Prius, would not be eligible.
Trade-in scheme
The government is also expected to announce a car scrappage scheme in the Budget on 22 April.The government is also expected to announce a car scrappage scheme in the Budget on 22 April.
This will provide £2,000 for car owners to trade in their old cars to buy new ones.This will provide £2,000 for car owners to trade in their old cars to buy new ones.
The plan is designed to boost demand for new cars and help struggling carmakers who are suffering during the recession.The plan is designed to boost demand for new cars and help struggling carmakers who are suffering during the recession.
Similar schemes have proved successful in continental Europe. In Germany, for example, car sales increased by 40% in March compared with a year earlier.Similar schemes have proved successful in continental Europe. In Germany, for example, car sales increased by 40% in March compared with a year earlier.