The cities – which comprise Birmingham, Cambridge, Coventry, Dundee, Nottingham, Oxford, Sheffield and West Yorkshire – will now undergo feasibility studies, each backed by £30,000 of government funding, which will be independently carried out by the Energy Saving Trust (EST).

The studies will gather vital information into how local authorities could use the money to reduce the upfront cost of purpose-built taxis and install charging infrastructure for taxi and private hire use.

Transport Minister Andrew Jones said: “Plug-in taxis are cheaper to run, better for the environment and an example of Britain leading the way in an innovative industry. That is why government is investing £500m in low emission vehicles over the next 5 years to make them an accessible and affordable choice for all.

“These cities have shown they are commitment to adopting greener technology and the government is backing their ambition by showing the benefits a share of £20 million of funding could deliver.”

Local authorities that are not shortlisted are still able to submit bids for a share of the £20m fund, but will have to cover the cost of their own feasibility study.

The Government will announce the winning schemes in April next year.