The car scrappage scheme is set to be extended. Business Secretary Lord Mandelson announced the move in his Labour Party Conference speech this afternoon.
He told the gathered audience: ” We cannot do everything but that does not mean doing nothing. So today I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans.”
The decision follows campaigns from motor industry bodies including the SMMT and RMIF calling for the scheme to be extended. Concerns were raised that car sales could fall dramatically and motor manufacturing jobs lost without the continued support.
The £300 million fund for the scheme which began in May is expected to run out by the beginning of October, meaning that the decision to extend comes just in time. The scrappage incentive gives a £2,000 discount to buyers of new cars who agree to scrap their 10 year or more old car in return.
Commenting, Director of Policy at manufacturing organistation, EEF, Steve Radley, said: “The success of the scrappage scheme has been clear for all to see and has put a floor under manufacturing recession and helped retain skilled employees.”
