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September 28, 2009    

Mandelson to announce extension of scrappage scheme

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by Kay Murchie
”Mandelson

It has been reported that Business Secretary Lord Peter Mandelson will today announce that the car scrappage scheme, branded ‘Cash for Bangers’ will be extended.

The scheme, which was launched on 18 May to boost the ailing car industry, pays consumers £2,000 to get rid of their old cars and replace it with a more environmentally friendly car.

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.

In addition, the Engineering Employers Federation (EEF) wrote to Chancellor Alistair Darling requesting that scheme be extended.

However, today the BBC has reported that Lord Mandelson will announce the extension at the Labour Party Conference in Brighton today.

Lord Mandelson is expected to confirm that the scheme will cover an extra 100,000 vehicles.

Furthermore, he is expected to tell the Labour conference that the extension of the scheme will cover vans purchased before September 2002. Cars have to be at least 10 years old in order to qualify for the scheme.

Last week, the Society of Motor Manufacturers and Traders (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.”

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Tags: , Business Secretary Lord Peter Mandelson, extend, , Labour Party Conference, ,