The Labour Party is considering a plan to offer cash incentives to drivers to purchase electric vehicles (EVs) in line with its commitment to ban the sale of new petrol and diesel cars by 2030.

Officials are exploring options to link subsidies and interest-free loans to British manufacturing and jobs to counter the potential influx of cheap Chinese EVs into the market.

Proposed measures include a universal cash subsidy of approximately £1,500 to help with EV deposits, three-year interest-free loans for personal contract purchase agreements, and loan guarantees for car finance deals.

However, internal disagreements within the party have delayed an official announcement, with some members concerned about the scheme's costs and impact on the UK car industry. Labour is also investigating ways to ensure the subsidies benefit vehicles manufactured in Britain.