Question to the Department for Transport:

To ask the Secretary of State for Transport, what discussions he has had with colleagues and representatives from the automotive sector regarding the adequacy of the £600 million allocated in the Spending Review and Autumn Statement 2015 for the Plug-in Car Grant over the Parliament.

The Office for Low Emission Vehicles (OLEV) comprises elements of the Department for Business Innovation and Skills, Energy Climate Change and Transport and its work programme has cross-government support. The 2015 Spending Review settlement represents an increase of over £100 million on the Government’s manifesto commitment and means that the Plug-in Car Grant can run throughout the Parliament if there is a market need.

The government announced on the 17 December a long-term extension to the Plug-in Car Grant to encourage more low emission vehicles on Britain’s roads. The announcement confirms the grant will continue until at least the end of March 2018.

From next March, buyers of the greenest cars can save up to £4,500 off the price, bringing total funding for the scheme to £400m over the course of this Parliament. In addition the greenest vehicles will be exempt from the £60,000 price cap.

Ministers and officials frequently meet with representatives of both vehicle manufacturers and the Society of Motor Manufacturers and Traders to discuss the ULEV market. This helps to inform policy discussions about grant levels.