Chancellor Alistair Darling is expected to offer the payout in the form of a voucher redeemable on a new or almost new model for anyone getting rid of a car more than nine years old. It is believed that issues were still being worked out but the scheme will appear in the Budget next Wednesday.
Car registrations are down by more than thirty percent on a year ago. The German government introduced the scheme in January and this has led to a 21 percent rise in vehicle sales in February, the number in the UK fell by 21 percent in the same month. A similar scheme in France has not been quite so successful but buyers only receive £1000 for vehicles over ten years old. China and Brazil boosted car sales to record levels last month with tax incentives for buyers.
Britain’s Society of Motor Manufacturers and Traders has been pushing for the allowance for months and has criticised the Government for dragging its feet over the scheme.
The introduction of a scrappage scheme could create a demand for up to 250,000 new vehicles and remove an equal number of old and heavily polluted vehicles from our roads which can only be good for the environment. The scheme needs to be put in place as soon as it is announced if it is going to help save the motor industry.
£5000 incentive for electic cars article