The two UK cities could receive up to £50 million to develop an all-electric bus fleet and the infrastructure to go with it.
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The ultimate goal of the track project is to design an affordable trackform that can be easily removed, reduce impact on utilities and existing infrastructure, and save hundreds of thousands of pounds.
Said to be a first in the UK, the scheme will see drivers swapping their cars for mobility credits of up to £3,000 which they can spend on public transport, taxis, share schemes and car clubs.
The vehicle will be electric-powered; generating zero emissions, designed with the view to being autonomous in the future.