MOTORISTS who buy an ultra-low carbon car will receive 25% off the price up to a maximum of £5,000, the Government has announced. The grant will be available from January 2011 when a range of eligible vehicles are expected to be on line.

The Government also announced the roll-out of a £30 million fund for a network of electric vehicle hubs - called Plugged-In Places - which will see charging infrastructure appearing in car parks, major supermarkets, leisure and retail centres, as well as on the street. The first 'Plugged-In Places' were named as London, Milton Keynes and north- east England. A total of more than 1,000 vehicle recharging points will be installed during the next three years.

The initiatives are part of a £450 million Government strategy to support the creation of a flourishing early market for ultra-low carbon vehicles. The programme will help to meet the UK's commitment to reduce carbon emissions from transport, as well as creating new business opportunities for UK-based companies in the automotive and charging infrastructure sectors.

Commenting on the initiative, Transport Secretary Lord Adonis said: "Decarbonising transport isn't an aspiration - it's a reality. By this time next year, cutting-edge motorists will be on the roads with these next generation cars they've purchased because of our help.

"And thanks to the Plugged-In Places we will have in place infrastructure to support this growing early market."

The grant towards the cost of the low carbon vehicles will be open to both private and business fleet buyers. To be eligible for the scheme, cars will have to pass performance criteria to ensure safety, range and ultra-low exhaust emissions.

A second competition for Plugged-In Places funding is to follow later in the year, with consortia from the West Midlands, Cornwall, Sheffield, the Lake District, Greater Manchester and Northern Ireland having already confirmed their intention to bid for the next wave of funding.