The move is intended to boost electric vehicle take-up and will see motorists and business fleets continue to be offered up to £5,000 off the price of an electric car for all categories of vehicle.

Previously the Government had announced that grant levels would be reviewed once 50,000 vehicles had been sold, with this milestone expected to be reached in November this year. Moving the end date to at least February next year will give the Government time to develop a long-term plan following the Spending Review in November.

Transport Minister, Andrew Jones MP said: “I’m pleased to announce today that the Government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles.

“The UK is now the fastest growing market for electric vehicles in Europe. We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”

Hetal Shah, head of Go Ultra Low, welcomed the news, saying: "Continuing the Plug-in Car Grant at current levels is positive news for everyone, as it encourages zero-emission motoring and secures more funding for a greater number of ULEV buyers. This announcement demonstrates the government’s commitment to supporting the growth of the ULEV market. If we are to meet ambitious targets for ULEV uptake, continued investment is paramount.”