UK to Launch $2 Billion Initiative for EV Transition

LONDON (Reuters) -Britain's government is expected to introduce a 1.5 billion pound ($2 billion) package to accelerate a switch to electric vehicles, it said, including an extra 1.3 billion pounds for a grant scheme to buy new electric cars.

The government said that since its launch in July, the Electric Car Grant scheme had helped more than 35,000 drivers make the switch to an EV by cutting upfront costs by up to 3,750 pounds.

The budget, due on November 26, is also expected to unveil an additional 200 million pounds to accelerate the rollout of chargepoints across Britain, the government said.

As part of a wider goal of achieving net-zero greenhouse gas emissions by 2050, Britain wants to phase out sales of new petrol and diesel cars by 2030. But demand for EVs has stalled with consumers citing high upfront costs as the main barrier.

The opposition Conservative Party criticised the move.

"Ordinary families are facing increased taxes and spiralling inflation under Labour, yet the government's priority is handing out discounts on new electric cars," said Richard Holden, the Conservatives' transport policy chief.

"This is exactly the kind of tone-deaf, big-spending nonsense that we expect from this Labour government."

($1 = 0.7639 pounds)

(Reporting by Elizabeth PiperEditing by Mark Potter)