Green grants cut by 30%

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Government grants for alternative-fuelled cars in England have been cut by around 30%.

PowerShift, the agency that provides funds to subsidise cars fuelled by LPG and petrol-electric hybrids, has just announced new grant levels for 2004/05, which will be introduced on 1 April.

The Government funding for this year will remain at £26m - the same as the last financial year, but an increase in the number of applications for 2004 has meant a substantial cut in individual grants.

Previously, motorists wanting to convert to LPG, or those looking to buy a petrol-electric hybrid, were eligible for a £1000 grant. That amount has now been reduced to £700.

A spokesman for PowerShift said: ‘By reducing the amount of money awarded to each applicant, we can ensure more people receive grants while continuing to help transform the market for cleaner fuels.’

These changes only affect motorists in England. The Scottish Executive and Welsh Assembly are responsible for their own funding and, for the time being at least, are continuing to award grants at the 2003/04 levels.