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According to the Daily Mail, Ministers said last night that the taxpayer-funded grants could not be 'maintained indefinitely', and the subsidies will be reduced before being phased out.
Introduced two years ago to boost sales of electric, emission-free vehicles, a report published by the Commons Transport Select Committee last September claimed that instead, the subsidies were simply allowing 'affluent households' to buy a second car on the cheap.
And despite the £11 million spent by the Government on grants, and the installation of more than 1,600 public charging points around the country, demand for electric cars has remained low.
Many drivers were found to suffer 'range anxiety', worrying about the distance they can travel in a single charge, while most were unsure about where public charge points were located.
However, research commissions by the Transport Research Laboratory (TRL) suggests that the grants play an 'important role' in nine out of ten electric vehicle purchases.
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