Philip Sellwood, chief executive of the Energy Saving Trust said: 'Market research conducted for the Energy Saving Trust clearly indicates that consumer demand for cleaner vehicles, emission reduction technologies and TransportEnergy grants will continue to grow next year. To meet this anticipated demand during 2004/5 grant levels need to be revised to ensure the programmes continue to provide the widest possible support to the market.

'To ensure that Government funding is used as effectively as possible, we will support the development of new, cleaner fuel technologies to the point where the market for these technologies becomes self-sustaining. This discussion with our key stakeholders will help nurture the market for cleaner fuel technologies and deliver environmental benefits in terms of reduced CO2 and improved air quality.'

The debate only affects England. Grant levels and applications in Scotland are unaffected, where funding from the Scottish Executive is in place for CleanUp, PowerShift and autogas+.

If you would like to express your views on the issue contact Alex Veitch, senior transport policy adviser at the EST, at alexv@est.co.uk. Responses should be submitted by January 30. Modifications to the scheme will be announced before the beginning of the new financial year.