CAR manufacturers have voiced fears for the future of schemes promoting the take-up of cleaner car technologies after the Department for Transport announced it was revising its grant funding for low emission vehicles.

The announcement will affect the Powershift, CleanUp and New Vehicle Technology Fund programmes, which offer grants to new car buyers hoping to buy cleaner vehicles.

They were set up by the Government as a result of a white paper in 2002 to ensure the UK leads a global shift towards cleaner, low carbon vehicles.

The DfT has maintained that changes must now take place to comply with European rules on state aid.

And while there is currently no detail on the level of funding adjustments or the structure of new schemes, motor industry bosses fear the level of funding will be slashed.

But the cuts are not the first setback to hit the cleaner car programmes.

The Powershift and CleanUp programmes were subject to 30 per cent cuts in 2004 after grant funding dried up completely, without warning, in the final quarter of 2003.

Commenting on the news, Christopher Macgowen, the Society of Motor Manufacturers and Traders chief executive, said: "This is a real concern to the industry and once again sends out all the wrong messages to those who want to buy and market cleaner vehicle technologies.

"The reality is that any new scheme developed to comply with EU state aid rules will take time to establish.

"Industry needs a stable framework of incentives so that products can be planned and launched effectively."

Manufacturers are now to seek urgent clarification from DfT on a number of points that affect their development programmes and grants offered to new car buyers.

They are asking for clarification on the value of the grant from April onwards along with a clear timetable for the introduction of new schemes next year.