Government

After much uncertainty, the government has today confirmed that the grant of up to £5,000 towards ultra-low carbon cars will go ahead.

The £5000 grant towards buying an electric car, which the Labour government said would be introduced in January 2011, has still not been confirmed by the new coalition government.

Although the headlines of today's emergency Budget statement are about the public sector and benefits, for motorists the key outcome is that there are no significant changes to the plans of the previous government, so here's a summary of what's coming.

The new Minister for Transport, Phillip Hammond MP, has vowed to put a halt to Labour's 'war on the motorist', but will the new government keep the previously announced incentives to encourage ultra-low emission vehicles?

With the scrappage scheme now officially closed the Government has revealed that the scheme has not only provided a huge boost to the industry but has also had a positive environmental impact too.

The Budget has acknowledged that lower carbon cars are coming, with some taxes being adjusted with lower CO2 thresholds.

Ford is aiming to invest up to £1.5 billion in new, affordable, volume-produced low CO2 technologies at its four UK facilities over the next five years after securing a £360 million Government loan guarantee.

Alistair Darling announced in today's Pre-Budget Report that electric cars will be exempt from company car tax from April 2010 for five years.

The government has announced its support for the New Automotive Innovation and Growth Team's (NAIGT) recommendations to maximise the opportunities presented by the transition to a low carbon agenda.

The Government has today announced an extension to the scrappage scheme.