Budget slashes grant to buy an electric car by £500 to just £3,000 and removes it for cars costing more than £50k, including Tesla's Model S and X

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The government has cut the financial incentive for buyers of electric cars - and removed it entirely for buyers of expensive models, it has been confirmed.

The Chancellor's Budget document states that the Plug-In Car Grant has been extended for a further three years to 2023.

However, the value of the grant has been reduced by £500 to £3,000 from midnight tonight and models costing more than £50,000 will be ineligible for the subsidy, the Department for Transport and Office for Low Emission Vehicles have confirmed.

The grant - which has been available since 2011 and helped more than 200,000 Britons buy low-emission cars - was due to expire at the end of March.

When it launched nine years ago, it offered to pay £5,000 toward the price of a new electric car to reward early adopters of green vehicles.

This was subsequently reduced to £4,500 and was again scaled down in October 2018 to £3,500 as the government looked to curtail the incentive.

During his Budget statement, Chancellor Rishi Sunak announced a fresh investment of £403million to keep the cost of electric cars low for the next three years.

The Treasury document confirmed this news, but failed to mention any change to the value of the grant available to buyers of new electric cars.

However, it has subsequently been confirmed that the grant has been trimmed by a further £500 to just £3,000 - and with immediate effect.

Electric cars worth more than £50,000 are also no longer eligible to receive the subsidy at all, it has been clarified by the DfT and OLEV.

This decision will impact a number of po[CENSORED]r electric models above this threshold.

That includes Tesla's Model S saloon and Model X SUV, which currently cost from £77,700 and £82,700 respectively.

The Tesla Model S, which costs from £77,700 in the UK, will no longer be eligible for the Plug-In Car Grant

The pricier Tesla Model X SUV will also no longer qualify to receive the reduced £3,000 grant from midnight tonight

t also means Audi's E-tron (from £59,185), Jaguar's I-Pace (from £63,925), the Mercedes-Benz EQC (from £64,925) and Porsche's new Taycan sports car (from £83,367) will no longer qualify for the grant from midnight tonight. 

The Office for Low Emission Vehicles said: 'As the uptake of zero-emission cars increases, a small reduction to the grant, as well as excluding cars costing £50,000 or more will allow more drivers to benefit from making the switch for longer.

'These changes will come into effect on orders placed on the portal after 11:59pm on 11 March and the government will continue to keep the rate of the grant under review.'

Audi's E-tron electric SUV costs from £59,185 and will therefore not qualify for the PICG