More electric car models will be eligible for taxpayer-funded grants as part of Labour’s drive to meet Net Zero goals.
The Department for Transport (DfT) has announced £1,500 discounts for certain Nissan, Renault and Vauxhall models.
But the Tories branded the plans ‘deranged’ and questioned why ministers were handing taxpayers’ money to foreign car companies.
The £650 million electric car grant scheme enables motorists purchasing some new electric cars costing up to £37,000 to save either £1,500 or £3,750, depending on the vehicle’s green credentials.
The greenest vehicles will be in band one, while band two vehicles will receive up to £1,500. Chinese EVs are not expected to meet the criteria for the grants. No band one models have been announced yet.
But Richard Holden, Tory transport spokesman, said: ‘Labour ministers’ decision to hand £650 million of taxpayers’ money to foreign car companies, for cars made in foreign countries, is deranged.
‘This latest mess with a confused rollout and botched incentives is only making things worse. Labour has put ideological obsession ahead of hard-pressed taxpayers.’
Under the Government’s zero emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission, which generally means pure electric.
The Department for Transport (DfT) has announced £1,500 discounts for certain Nissan, Renault and Vauxhall models
Labour transport secretary Heidi Alexander said: ‘With discounts on 17 car models announced this week alone, we’re delivering on our promise to make it easier and cheaper for families to go electric’
Across all manufacturers, the figure during the first half of the year was 21.6%. But the Government has pledged to ban the sale of new fully petrol and diesel cars and vans from 2030.
The DfT has previously said many drivers cite upfront costs as a ‘key barrier to buying an electric vehicle’ and the grant will bring down prices so they ‘more closely match their petrol and diesel counterparts’.
Funding for the scheme will remain ‘under review’. And it will not immediately be available as manufacturers must apply for eligibility for vehicles in their ranges, rather than buyers registering grants at the point of purchase.
Transport Secretary Heidi Alexander said: ‘With discounts on 17 car models announced this week alone, we’re delivering on our promise to make it easier and cheaper for families to go electric.’
