Government confirms extension of scrappage scheme
Business Secretary Lord Peter Mandelson has confirmed this afternoon that the scrappage scheme will be extended to cover an additional 100,000 cars and vans.
The scheme branded ‘cash for bangers’, which was launched on 18 May, was originally intended to allow 300,000 cars to be traded in.
The £300 million initiative was expected to run until the end of February 2010 but many experts said funds were running out fast and car industry trade bodies have been urging the Government to extend the scheme.
The scheme pays consumers £2,000 to get rid of their old cars and replace it with a more environmentally friendly car.
Speaking at the Labour Party Conference in Brighton today, Lord Mandelson said: “Our car scrappage scheme has been so successful the money is running out.
“The industry has asked that the scheme be topped up. So today I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans,” added Lord Mandelson.
The move has been welcomed by many business groups including the CBI, the British Chambers of Commerce, the Automobile Association, the Engineering Employers Federation and the Society of Motor Manufacturers and Traders (SMMT).
Last week, the SMMT announced that the number of cars built for the UK market reached its highest level in almost five years as a result of the scrappage scheme.
SMMT chief executive Paul Everitt, emphasised that “A continuation of the scrappage scheme would help to sustain growth and bridge uncertainties associated with the ending of VAT discount.”