U.K. Extends Low-Emissions Plug-In Van Discounts

The U.K. government, citing continued demand, extends its ultra-low-emissions plug-in van grant that gives buyers a 20% discount off the upfront cost worth up to £8,000 ($11,900).

The scheme also allows businesses that purchase the vans to take advantage of several tax incentives, including exemption from vehicle-excise duty and congestion charges in London.

Since 2012 more than 1,250 vans have been purchased with the discount. The vans have running costs potentially as low as two pence ($0.03) a mile.

The extension is announced by Transport Minister Baroness Kramer, who also says the government will spend an additional £4 million ($5.9 million) to support the early deployment of publicly accessible gas-refueling points for heavy-goods vehicles across the U.K.

The investment will give businesses using gas-powered trucks the flexibility to refuel en route, rather than having to specifically plan journeys between refueling stations.

The government’s Office for Low Emission Vehicles will work with Innovate UK and the freight sector to identify areas where demand for infrastructure is highest. Gas retailers and other interested parties will be encouraged to bid for a share of the funding.

The Freight Transport Association Climate Change Policy Manager Rachael Dillon says the limited number of public-refueling stations for gas HGV operators is a major roadblock to the market taking off. She says the government’s commitment to funding will give operators reassurance to invest.