Drive for electric cars zapped as grants are cut

GRANTS to get motorists to switch to electric cars have been slashed, after soaring demand put huge strain on the Government scheme.

The Department for Transport announced yesterday that the plug-in car incentive would be cut by £500 to £2,500 – with the upper limit for eligible vehicles reduced from £ 50,000 to £35,000. Ministers said the move, which came into immediate effect, would make funds last longer and focus resources on those who could least afford electric vehicles.

But critics said the changes have been brought in too early, and will put the brakes on the drive to switch to electric ahead of the phasing out of sales of new petrol and diesel cars and vans in 2030. Transport minister Rachel Maclean said: ‘Growing demand... means that, while the level of funding remains as high as ever, we are refocusing our vehicle grants on the more affordable zeroemission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.’ But Mike Hawes, of the Society of Motor Manufacturers and Traders, said the decision to cut the grants was ‘the wrong move at the wrong time’.

Nearly 11 per cent of new cars sold last year were plug-ins, compared with 3 per cent in 2019. The grant scheme was renewed last year, with £582million funding intended to last until 2023.