The Government is to turn Britain a world leader in producing and exporting electric vehicles with ambitious plans to install a network of roadside recharging power points and grants for buying electric vehicles.

Prime Minister Gordon Brown revealed plans for the green grants ahead of next week’s Budget (April 22).

He said £250 million had been set aside for investment in green infrastructure and that agreements were already being signed with companies to begin trials of electric vehicles.

“We want electric cars to be produced in Britain – environmental jobs over the next few years could be about 400,000,” he told BBC Radio 2’s Jeremy Vine show.

Chancellor Alistair Darling will formally announce in the Budget that trials for electric cars in two or three cities will begin next year with the Government to open talks with power companies to ensure the vehicles can have their batteries recharged at thousands of power points.

However the confident assertion that electric cars are good for the environment is not backed up by some pressure groups.

Friends of the Earth's executive director Andy Atkins said that the Government was missing the point about renewable energy, and needed to invest in the energy-making infrastructure before spending money on energy-using schemes.

He said: “Gordon Brown's electric dream is commendable but essentially misses the point - renewable energy is what we need.

“Electric cars are only as green as the energy they run on - and the renewable energy industry is on its knees.”

Leaked briefings in some national papers suggest that a £2,000 grant might be made for the purchase of electric vehicles.

Some industry sources are concerned it is no coincidence it is the same amount asked for by the Society of Motor Manufacturers and Traders for the proposed scrappage scheme.

When the motor industry asked for state aid at the turn of the year, the funds offered were for future environmental projects rather than current problems – suggesting the government is taking a hard line stance to force the industry to change rather than offering a ‘bail out’ such as scrappage.

Honda, currently one of the few carmakers to offer cars in any great numbers featuring petrol/hybrid power said it did not believe in using government money to create a market.

John Kingston, Honda environmental spokesman, said: “We believe that the onus is on us to make products that the public wants to buy, and as a result we’ve spent many years building petrol electric hybrid so we can get to the point now of being able to offer them to fleets and drivers at affordable level – we believe that is how you create markets for alternatively fuelled cars.”

Honda believes that hybrid vehicles rather than full electric are the short to medium solution until fuel cell vehicles are a viable volume proposition.

London mayor Boris Johnson has backed the Government’s plan, and said he would like to see 100,000 electric vehicles and 25,000 recharging points on the capital’s streets by 2015.

He added that the Greater London Authority (GLA) would pay a third of the expected £60 million cost, and called on the Government to fund the remaining £40 million.

Johnson said he would aim to move the GLA’s 1,000-strong fleet completely to electric power by 2015, while Prime Minister Gordon Brown told The Independent he would look to set an example by looking to turn much of the government’s fleet electric.

Johnson estimates the cost of installing electric recharging points and converting the GLA’s fleet at £60 million.

He has pledged to fund a third of this and is calling for Government and private sector funding to cover the rest.