Car Scrappage Scheme to be Extended
29/09/2009
When the car scrappage scheme was launched earlier this year with government funds of £300m, it was expected that the funding was to run out by the end of October. Since the start Manufacturers, trade bodies and dealers have all lobbied for its extension.
Thankfully, yesterday (28th September) the government announced they will be extending the scheme to include a further 100,000 cars and vans.
Business secretary Lord Mandelson said the government was responding to calls from carmakers.
"Our car scrappage scheme has been so successful the money is running out," he said. "The industry has asked that the scheme be topped up. We cannot do everything but that does not mean doing nothing," he said.
In addition they also announced that the existing scheme would be extended to include younger vans. Now vans aged eight years and over will be able to qualify.
This decision is welcome news to the motor industry, the extension is extremely important in inspiring consumer and business confidence; the additional 100,000 vehicles should help to counter the potentially negative impacts of a return to the higher VAT rate and the introduction of first year VED rates.
If you have any queries concerning the above please contact one of our specialist team on 0161 493 1930.