£5,000 electric car grant gets long-awaited green light

A £5,000 electric car grant has finally been given the green light by the coalition government.

The previous Labour government had pledged to pay £5,000 to car buyers investing in a new electric vehicle. However, fears that the grant would never see the light of day surfaced when the new coalition government took over in May.

Business Secretary Vince Cable cast doubt on the plans last month when he announced that he could not give any assurances over its future. He told BBC News that the new government had "moved on from an era of subsidies."

Mr Cable's announcement potentially represented a huge blow to the UK motor industry, as many new electric and hybrid models are set to be produced by British factories.

The motor industry understandably breathed a huge sigh of relief yesterday when it was confirmed that the subsidy had been given the go-ahead. According to The Telegraph, all motorists buying a new electric or ultra-low carbon hybrid from January 2011 will get 25% off, up to a limit of £5,000.

Under the scheme, a new Nissan Leaf will cost £23,350, while the Mitsubishi i-MiEV will be available for £33,699 with the grant.

Transport Secretary Philip Hammond, who confirmed the grant, hopes it will strengthen the UK's growing reputation for low-emission vehicles. He was quoted by The Guardian as saying: "The coalition government is absolutely committed to low-carbon growth [...]"

"This will ensure that the UK is a world leader in low-emission vehicles," he added.

Dylan Lloyd, Wimbledon, Ford Fusion

Gary & Kim Myers, Rotherham, Vauxhall Astra