Fleet News

Return for green grants ahead?

THE reinstatement of a grant for environmentally-friendly cars is a step closer following European Commission approval of the Department for Transport’s Low Carbon Car Fund scheme.

Following the collapse of the Powershift scheme 14 months ago through a combination of lack of funds and concerns that it breached European state aid rules, six new schemes were submitted to the European Commission by the Department for Transport, with a combined budget totalling £24 million.

The Low Carbon Car Fund was one of these programmes. Although details of the schemes remain confidential, experts believe it is likely that cars emitting 115g/km of CO2 or less would be eligible for a Government grant of between £300-£1,000.

Society of Motor Manufacturers and Traders chief executive Christopher Macgowan said: ‘Incentives are a fundamental way to drive a market.

‘The commission’s ruling has cleared the way for the UK Government to support the scheme as soon as possible.’

Now the scheme has gained European approval, it is down to the Department for Transport to rubber stamp it. However, there is no indication of when that may happen.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee