The Government is making £20 million available to local authorities to support the rollout of ultra-low emission taxis across the UK and a further £25m specifically for the Greater London Area.
The £25m fund will help taxi drivers cover the cost of upgrading to a greener vehicle to meet forthcoming requirements.
All taxis will also qualify for the Government’s plug-in car grant, which currently offers up to £5,000 off the cost of an eligible low emission vehicle.
Local authorities are invited to bid for feasibility studies to prepare for the rollout of these vehicles in their fleets. The full guidance is available here.
The news follows Geely’s announcement outlining plans for a new £250 million state of the art facility to produce the next generation of low-emission London Black Taxis.
Geely, which owns the London Taxi Company, was awarded £17 million from the Government’s Regional Growth Fund to build this facility, which will create 1,000 local jobs and ensure the London Black Taxi continues to be designed, developed and made in the UK.
These new taxis will comply with the new regulations being introduced by the Mayor of London that will require all London taxis to be zero-emission capable from January 2018.
Business Minister Matthew Hancock said: "Low emission vehicles are the future and show that we can meet our climate change obligations in a way that enhances technology.
"I'm looking forward to the roll-out of greener taxis across the UK and have no doubt that with the support of Geely this will happen very quickly."
Transport Minister Baroness Kramer said:“The low emission vehicle sector is going from strength to strength with demand in the UK up by over 300% last year, making the UK a leading market for this technology. Today’s announcement means ultra low-emission taxis will be the smart choice for more taxi drivers and everyone will benefit from improved air quality and greener travel.”