Risk news

Fleet managers are being encouraged to buy electric vans after the government extended its plug-in vehicle incentive to the vehicles.

Van buyers will be able to receive 20 per cent - up to £8,000 - off the cost of a plug-in van.

The move is an extension of the plug-in car grant which offers 25 per cent - up to £5,000 – to motorists buying a new plug-in car.

Ministers also confirmed there is funding secured for the car grant until 2015.

The van version of the plug-in scheme, designed to enable the purchase of ultra-low carbon vehicles which could otherwise have been unaffordable, will be worth 20 per cent, up to £8,000.

Transport minister Norman Baker said it was "great news" for businesses.

The British Vehicle Rental and Leasing Association (BVRLA) welcomed the inclusion of vans in the plug-in scheme and said it showed the government had listened to business fleets.

"This is great news for businesses given the lower running costs of these vehicles – fleet buyers tell us that this is one of the most important factor influencing their decision on what to buy," Mr Baker said.

"Electric vehicles are the arrowhead for a low carbon revolution in motoring and as more models come to market we’ll begin to see sales gather pace."

To be eligible for the scheme, vans will have to meet performance criteria to ensure safety, range, and ultra-low tailpipe emissions.

John Lewis, BVRLA chief executive, said: "It is great that the government has listened to the feedback from business fleets, who have spent the last year telling the government that the van market was crying out for this sort of low-carbon incentive.

"Electric vans are very expensive, but the combination of this grant, much lower running costs and some significant tax benefits will enable many fleets to take the plug-in van plunge."