A £2,000 government grant provided to encourage motorists to buy electric cars as part of a fresh initiative to stimulate the green economy will be announced by ministers in the run-up to the budget on April 22.

Funding comes off the back of Gordon Brown’s recent announcement that electric cars will mass introduced in Britain with trials to begin next year in three cities.

It aims to help the environment, by encouraging the use of the most fuel efficient cars and to kickstart the market in electric cars in Britain.

The subsidy is similar to grants available for people who install solar thermal and photovoltaic energy equipment in their homes.