The British government is the latest body to offer subsidies for hybrid and electric cars as part of a greater effort to increase the vehicles’ popularity and help encourage motorists to purchase more environmentally-friendly vehicles. The subsidies will range from about $3,000 to $4,000 but won’t be applicable until 2011.

The car industry, on the other hand, has been seeking immediate action, but it may get its wish as British prime minister Gordon Brown is still considering a full-scale subsidy for the industry and may make an announcement in the Treasury’s annual budget later this month, Bloomberg reports.

In a statement released by the country’s Department of Transport, secretary Geoff Hoon explained that only about 0.1% of cars sold in the UK are electric and that the new incentives will be targeted at cars fast enough to have “mass-market appeal.” This means that electric cars currently on sale, like the NICE MyCar pictured above will miss out on the subsidy.

Along with the new subsidies, the government has also set aside money for low-carbon transport initiatives, including work on setting up a network of charging points.