Transport Secretary Philip Hammond confirmed today (July 28) that motorists would be able to apply for the cash towards purchase of an ultra-low carbon car from January 2011.

The £5,000 has been guaranteed by the Government until March 2012, but will be reviewed in January 2012.

Until March 2010 £43 million will made available to fund the scheme.

Mr Hammond opted to make the announcement today, rather than wait for the completion of the Government’s spending review he said to ‘support the early market for ultra-low carbon cars’.

Under the scheme drivers will be able to reduce the up-front cost of vehicles, deemed eligible by the Government, by 25% but capped at £5,000.

Details of cars deemed suitable for the scheme can be found on the DfT website.

Mr 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.”

The LowCVP managing director, Greg Archer, said: “The UK can become an early market for electric vehicles and provide support for UK automotive companies in developing opportunities and expertise in this key emerging area.

“This is an ideal opportunity to create the green, high-tech manufacturing jobs the UK needs.”

Luke Walsh

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