As more information about the UK's £5,000 ultra-low carbon vehicle incentive ($7,800 U.S. at the current exchange rate) filters in, the grim truth is starting to seep out. The UK's Labour party drafted the initial plans for the incentive and earmarked nearly $360 million to subsidize the purchase of ultra-low carbon vehicles. Earlier this year, a new coalition government took over and reworked the entire program. Now, it's got less money and won't help as many buyers.

According to reports, the coalition maintained the $7,800 subsidy per vehicle, but it slashed total program funding by 80 percent, committing just slightly more than $67 million to the ultra-low carbon vehicle program. That amount will subsidize the purchase of only 8,600 vehicles, compared to nearly 50,000 originally promised under the Labour party's plan. Labour transport secretary Sadiq Kahn questioned the impact of the incentive program brought forth by the coalition and claims that without proper funding, the UK's ability to attract ultra-low carbon vehicle manufacturers is now in doubt. It certainly makes it worthwhile to be an early, early adopter in the UK.

[Source: Autocar | Image: moacirpdsp – C.C. License 2.0]

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