£500m Government funding for low emission vehicles

Deputy Prime Minister Nick Clegg has announced a new five year low emissions scheme which will see £500 million worth of funding go into making efficient vehicles more accessible.

Electric and hybrid vehicles are constantly becoming more and more popular, with efficiency being at the forefront of the models’ appeal.

The new £500m government funding will come from the Office of Low Emission Vehicles (OLEV) and will span throughout 2015-2020. It will ultimately enhance the appeal of low emission vehicles and offer consumers an array of benefits.

It will also support the UK’s future when it comes to solidifying its reputation as a leader in the development and take-up of low emission vehicles.

Of the £500m funding, a massive £200m will be dedicated to the continuation of the £5,000 Plug-in Car Grant, which knocks off said amount from the price of a new ultra-low emission vehicle (ULEVs).

A further £100m will be devoted to low emission research and development projects. This funding in particular will help keep the UK up to date with all of the latest low emission technology.

There will be a significant focus on making low emission vehicles available to a wider market, with £35m going towards a new inner city scheme, £30m to make bus transport more efficient and £20m for taxi infrastructure.

One of the most noteworthy investments is the £32m dedicated to improving the rapid charging point network. This rapid charging points are capable of charging an electric vehicle in around 20 minutes.

By adding more charging points around the UK, electric cars will become a much more viable option for those who want to benefit from zero emission driving.

Mike Hawes, SMMT Chief Executive, said: “The move towards a low carbon vehicle future must be built around the three pillars of consumer incentives, strategically focused infrastructure and increased leverage for R&D support. We therefore welcome this announcement which reflects that balanced approach but, significantly, seek to incentivise technical developments in all segments of road transport, not just passenger cars.”

With increasing support for electric vehicles, there are consistently more zero emission models being released by manufacturers. The popularity of electric vehicles has been going from strength to strength, as has the rest of the UK car market with new car registrations showing a massive recovery over the last few years.

At present, the Nissan Leaf is the most popular electric vehicle as it is capable of delivering zero emission benefits as well as the practicality credentials of a family hatchback.