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Buyers offered pounds 5,000 towards their electric cars.

GRANTS of up to pounds 5,000 will be offered to motorists choosing to buy an electric car.

From January next year drivers will get a quarter off the value of their chosen electric or plug-in hybrid car, up to a maximum of pounds 5,000.

The aim is to make the price of an electric car comparable with that of a conventional fuel car, making them more attractive to families and commuters.

The Plug-in Car Grant will work in a similar way to the Government's car scrappage scheme, in that the value of the grant will be taken off the price of the car at the point of purchase, with dealers able to claim the subsidy back.

The offer will be available to private motorists and also for businesses' fleet vehicles. To be eligible for the scheme, cars will have to meet certain criteria around safety, mileage range and exhaust emissions.

The Government says the pounds 230m it has set aside for the Plug-in Car Grant is part of a pounds 450m cash pot designed to encourage people to use electric cars. The grant announcement was part of the Department for Transport's unveiling of a pounds 30m fund for a national network of electric vehicle "hubs".

The North East is one of three areas to be named Plugged-In Places, along with London and Milton Keynes.

Between them the Plugged-In Places will be installing more than 11,000 charging points over the next three years.

Transport secretary Lord Andrew Adonis said: "By this time next year, cutting edge motorists will be on the roads with these next generation cars they've purchased because of our help.

"And thanks to the Plugged-In Places we will have in place infrastructure to support this growing early market.

"Transport has a huge part to play in helping the UK meet its stringent emission reduction targets and today's announcement is another step on the road to putting the UK at the global forefront of ultra-low carbon vehicle development, manufacture and use."
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Publication:The Journal (Newcastle, England)
Date:Feb 25, 2010
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