UK Electric Car Subsidy: £5k for the first 8,600

The Nissan LEAF EV - Sunderland built and £5k off

The coalition Government are going to honour the subsidy commitment on electric cars. But only for the first 8,600.

We expected more sanity from the coalition Government on all things motoring – especially after Transport Secretary Philip Hammond decreed the war on motorists to be over. And we also hoped for common sense all round on all things eco, although we conceded there would have to be concessions to the fluffy Lib Dems.

And that seems to be what is happening with the electric car subsidy announced by the last Government. The Labour Government were planning on offering a subsidy of £5,000 (or 25% of the cost – whichever was lower) from January 2011.

We half expected the coalition to scrap the proposed electric car subsidy, which is supposed to encourage people to buy the idea that electric cars are a viable alternative to the internal combustion engine. Which of course they’re not. Fine to go shopping in locally and popping to Auntie Flo’s round the corner for tea, but don’t expect to go anywhere else.

Doubtless under pressure from the Lib Dems and the car industry the Government seems to have decided not to scrap the electric car subsidy, but rather to limit it to a point where it costs the taxpayer so little it really doesn’t matter too much.

It seems there will be a subsidy of up to £5,000 for up to 8,600 cars. A maximum exposure of £43 million. Rather less painful than the seemingly open-ended cheque Labour were willing to write (which probably sums up that administration).

So the Lib Dems are appeased. Nissan are happy. And all for not much more than £100k a day.

Cheap at twice the price.