Labour is preparing to spend hundreds of millions of pounds on new electric vehicle grants to help millions of drivers ditch their petrol and diesel vehicles.
Transport Secretary Heidi Alexander is expected to announce new measures this week that could see £640million set aside to reduce costs when purchasing a new electric vehicle.
The plan, which is set to be unveiled on Tuesday, will give higher levels of grants to EVs made in the UK, according to The Telegraph.
In June, electric vehicles made up one in four vehicles sold, with more than 47,000 vehicles sold, representing a 39.1 per cent year-on-year increase.
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Labour could launch new electric vehicle grants this week
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In comparison, only 10,716 diesel vehicles were sold, while petrol continues to see its market share drop, with sales falling 4.2 per cent in the last 12 months.
Despite this, the 24.8 per cent share of the market for electric vehicles is still short of the Zero Emission Vehicle (ZEV) mandate target, which requires manufacturers to have a certain amount of sales come from EVs.
Over the coming years, the target will increase, reaching 80 per cent at the end of the decade and 100 per cent in 2035, when only zero emission vehicles will be allowed to go on sale.
To address the need for more electric cars on the road, Heidi Alexander is expected to announce new measures to incentivise the purchase of new zero emission vehicles.
READ MORE: Electric car owners to save £1,500 every year with new support for 'innovative' home charging scheme
Speaking to The Telegraph, the Transport Secretary acknowledged that many drivers still see electric vehicles as too expensive, especially the upfront cost.
Alexander, who represents Swindon South, said people needed to be "honest" that there are still people around the UK who think EVs are "just for the very wealthiest".
She added: "We also want to really move away from people having range anxiety, to people having range awareness and knowing that they’re going to be able to make the journeys that they want to make.
"It's right that the Government thinks in the round about what we can do to tackle both of the issues, on charging and on the upfront cost of purchase."
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This would be the first electric vehicle grant scheme introduced since the Conservative Government under Prime Minister Boris Johnson axed the Plug-in Car Grant in June 2022.
Drivers could save £1,500 off the list price of a new electric vehicle when the scheme was in operation.
The PiCG had been successful in helping thousands of drivers make the transition to cleaner vehicles, with sales of EVs increasing from less than 1,000 in 2011 to more than 100,000 in the first five months of 2022.
Former Transport Minister Trudy Harrison explained that the Government now wanted to help boost sales of other electric vehicle types, including taxis and delivery vans.
The new Nissan Leaf will be manufactured in the UK next year
NISSAN
With the rumoured grant scheme set to launch in the coming days, millions of drivers could make the switch, especially as list prices of new EVs fall.
One of the UK's cheapest electric vehicles - the Dacia Spring - is available for less than £15,000, while other major brands are planning to release cars for less than £20,000.
A handful of electric vehicles are already manufactured in the UK, with plans for more to be made here soon, including the Nissan Leaf.
The new Nissan Leaf will be manufactured at the brand's Sunderland plant and will have a staggering battery range of up to 375 miles.