Electric car grant to be withdrawn

Despite warnings that its withdrawal will harm the fledgling electric car industry, the government’s £5,000 grant against the purchase cost of a fully-electric, or plug-in hybrid, car is to be dropped.

Over the last two-and-a-half years, the fund has awarded £11m and helped put an estimated 2,200 electric cars on the road. However, uptake has been less than expected and the scheme has been accused of favouring affluent families in the market for a second car.

According to the Transport Research Laboratory the effect of withdrawing the grant will be severe because it was a factor in 90 per cent of electric car purchases.

However, tax breaks for company car drivers who choose an electric car look set to continue for at least another six years and ministers have committed £500m between 2015 and 2020 to support zero emission cars and are currently consulting on how best to spend it.

As well as providing breakdown cover for conventionally-powered cars, vans and motorcycles, the ETA has played its part in supporting the development of the electric car industry providing as it does a recovery service for many electric vehicle manufacturers.