Drivers choosing electric cars will benefit from a £500 million investment, which extends the government’s £5000 EV incentive scheme for three more years.
The extended scheme comes as part of a wider initiative for an extra £500 million worth of funding boost the ultra low emission vehicle (ULEV) industry and help drivers both afford and feel confident using electric cars.
The automotive sector is worth £11.2 billion to the UK economy. The production of ultra low emissions vehicles is a major part of growth both now and for the future.
Full details of the elements of the €500-million plan will be published by autumn 2014; briefly, the different schemes include:
– Consumer grants. 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.
– Creation of an “UltraLowCity 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, incentivize 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.
– R&D. The government will invest £100 million in research and development in ULEV, with the intention of the country emerging 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.
– Charging infrastructure. A £32-million funding boost for charging infrastructure includes 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.
