Powershift's funding for 2003/2004 ran out in November, since when grant applications have been frozen. According to the Energy Saving Trust, the reduced grants have been proposed to ensure this doesn't happen again. The principal effect would be on local authority fleets adopting LPG, and on the net selling price of Toyota's Prius petrol/electric hybrid.
A Trust spokesman said: “Our research indicates that consumer demand for cleaner vehicles will continue to grow next year. To meet this demand during 2004/2005, grant levels need to be revised to ensure the programmes continue to provide the widest possible support to the market.”