Article Posted 29/09/2009
The Government has announced today a £100M increase to the vehicle scrappage scheme to build on the success of the scheme in boosting consumer demand.
The automotive sector supports R&D, technological innovation and skills and a manufacturing supply chain that are a mainstay of the wider manufacturing sector in the UK. Industry figures have reflected the positive impacts of the car scrappage scheme both within and beyond the automotive field, with manufacturing benefiting including the whole supply chain, from plastics and steel, to individual component manufacturers receiving a boost.
So far 227,750 orders have been placed through the scheme. The increased funding enables the scheme to fund a further 100,000 vehicles, bringing total budget to £400 million and covering up to 400,000 vehicles in total. The extension continues as a Government and manufacturer partnership, with matched funding providing the £2,000 discount for each scrappage order.
Alongside the increased funding the Government will work with manufacturers to extend the benefits to van drivers with vehicles over 8 years old rather than the current 10 year requirement.
Car drivers will also get a boost, with the age qualification changed by 6 months to extend the benefits to cars registered on or before 29 Feb 2000 (V registration). The scheme will come to an end in February 2010 or when the funding runs out, which ever is sooner.
Business Secretary Lord Mandelson said:
“The sector has been strongly affected by the recession, but the scrappage scheme has delivered a boost to manufacturers and the supply chain. We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400m.
“But we must make sure that the help we do offer is targeted, limited and proportionate. This is not a blank cheque to the auto manufacturers but recognition that there is still a short term challenge to boost demand and confidence in the sector.”