LONDON (AP) - British officials say a plan to grant up to 5,000 pounds ($7,800) to people who want to buy an electric car has survived sweeping government spending cuts.

Transport Secretary Philip Hammond said Wednesday the grant will go ahead from next January to bolster the early market for green cars.

The incentive could reduce the cost of a new electric, plug-in hybrid or hydrogen fuel cell car by a quarter. That discount will be capped at 5,000 pounds.

The Department for Transport says the government has set aside 43 million pounds for the incentive scheme until early 2012, when it will be reviewed.