Electric car subsidy plan announced

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The ministers test drove a Mini E at the Knockhill Racing Circuit in Fife after announcing that consumers will receive incentives of between £2,000 and £5,000 to buy an electric car from 2011.

Lord Mandelson said the vehicles would play a key role in cutting emissions and pave the way towards a "low-carbon future".

He also announced a doubling of the 100 demonstration electric vehicles which should be tested on Britain's roads in the next 18 months.

Mr Hoon said the consumer incentive - part of the Government's low-carbon transport plan - would mean an electric car was "a real option for motorists".

The incentives will be introduced to coincide with the expected mass introduction of electric and plug-in hybrid (part electric-part petrol) cars to the market.

The ministers, who were in Scotland for the UK Government Cabinet meeting, experienced the electric driving experience first-hand by driving the BMW Mini E.

Taking their seats, Lord Mandelson joked: "This is what the Secretary of State for Transport is for - he is there to drive you around."

Mr Hoon completed a few laps of the Knockhill circuit before letting Lord Mandelson behind the wheel.

Afterwards, the Business Secretary described the drive as "very comfortable".