Alistair Darling’s 2009 Budget, which announced the introduction of a £2,000 scrappage incentive scheme in the UK, has been met with mixed reviews from industry experts.
According to Retail Motor Industry Federation (RMIF) chairman Paul Williams, the announcement could offer a significant boost to new car sales.
“The introduction of a vehicle scrappage scheme as announced in the Budget will boost the new car market, encourage consumers to get back into car showrooms, and reduce the likelihood of employee downsizing in this sector,” he said.
“By opting for a vehicle scrappage scheme in the Budget, the Government has taken the opportunity to boost the new car market, while simultaneously helping consumers buy a new car.”
However, other industry analysts are less than convinced about the scheme’s merits.
Paul Philpot, managing director of Kia Motors UK, described the decision as “good but could do better” highlighting the fact that a large chunk of the costs are being heaped on to manufacturers as questionable during the economic turmoil.
Meanwhile, The Environment Transport Association’s director Andrew Davis went as far as to describe the Budget as “hogwash”.
“To describe this scrappage scheme as environmentally friendly is not just greenwash, it is hogwash. Many 10-year-old-cars have plenty of life left in them, so from a climate perspective, to scrap them is money poured down the drain,” he said.
Similar views were shared by our own editor Faye Sunderland who criticised the Government’s failure to place CO2 caps on the scheme.
“Without setting a limit on the CO2 emissions of the new cars bought under this scheme, it makes a mockery out of the Government’s said commitment to developing this country as a leader in green motoring,” she said.
“The scrappage incentive is now meaningless as it will not necessarily encourage the sale of greener cars. It is senseless to introduce the scheme in such a way.”
What do you think of the scrappage scheme? Leave a comment below with your thoughts.
