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Government Must Act to Support Motor Industry

Urgent government action is needed to support Britain's motor industry

Urgent government action is needed to support Britain's motor industry, according to the Society of Motor Manufacturers and Traders (SMMT). During the first two months of last year, 231,707 cars were registered. By contrast, only 166,466 have been registered in 2009.

'New car registrations continue to decline and although government recognises the strategic importance of the UK motor industry, urgent action is still needed,' said Paul Everitt, SMMT chief executive.

'Other European countries have been proactive in assisting their automotive industries and it is imperative that UK government increases the pace in responding to industry proposals for a scrappage scheme and access to finance and credit.'

Government finances are inevitably stretched during recessions. After all, expenditure often increases while tax revenue falls. However, supporting the motor industry keeps people in work - and that aids economic recovery.
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