Britain has announced that it will pay up to 5,000 pounds ($7,800, 6,000 euros) towards the cost of buying a new low-carbon car. The news came after the program for funding low-carbon cars was facing dark times due to an austerity drive. The subsidy means that up-front costs of vehicles that comply with tough emission standards will go down by 25%.
In a clear message that the British government is committed to contributing to a new green economy, the business department of the government says that it will make available funds to the tune of 43 million pounds for the scheme between January 2011 and March 2012. Any additions to this figure will be made after a spending review is done later this year.
The move is seen as one step forward in making Britain a global leader in low emission vehicles. Although this subsidy was proposed in 2009, by the previous government, there were concerns about the country being able to afford it as it was recovering from recession. The government in charge now, led by Prime Minister David Cameron, has already put in place several curbs on spending in order to tackle a budget deficit that is of record proportions.
(Via AFP via Google)