The grant will be available to motorists across the UK from 1 January 2011, reducing the cost of eligible cars by a quarter, up to a maximum of £5,000.

The Government is also encouraging a new network of electric vehicle recharging points in streets, car parks and commercial retail and leisure facilities as driving electric cars becomes a part of everyday life for pioneering British drivers. The successful bidding consortia in this second phase are based in: the Midlands; Greater Manchester; East of England; Scotland and Northern Ireland.

A few years ago, ultra-low emission cars with mass market appeal appeared just a pipe dream. Now they are a reality and we can have all the convenience of the car without all the carbon that normally goes with it. Government action to support affordable vehicles and more local charging points means we are on the threshold of an exciting green revolution—2011 could be remembered as the year the electric car took off. The British public has in the past shown it’s ready to embrace new technology and take practical steps to adopt a lifestyle kinder to the environment, so we could really be at the start of something big.

—Transport Secretary Philip Hammond

As announced at the Spending Review, the UK Government has made provision of more than £400 million (US$630 million) to promote the uptake of ultra-low carbon vehicle technologies. This includes approximately £80 million (US$126 million) supporting research and development activities; £20 million (US$32 million) for the installation of infrastructure; and, subject to review, provision of around £300 million (US$473 million) to support consumer incentives for the life of the Parliament. The first review of the Plug-In Car Grant will take place in 2012.

The level of the Plug-In-Car Grant has been agreed until 31 March 2012. The level will be reviewed in January 2012, taking into consideration a number of key factors, such as the costs of vehicles and the development of the early market. The level will then be set for subsequent years. £43 million (US$68 million) has been made available up to the end of March 2012.