Mandelson urged to extend scrappage
Industry body wants scrappage extension
Scheme running out of cash
SMMT wants original February end date
Business secretary Lord Mandelson has been urged to fund the car scrappage scheme until the spring.
The Society of Motor Manufacturers and Traders (SMMT) says the incentive scheme has helped boost consumer spending and secure UK jobs in the motor industry.
End of scrappage and VAT increase on horizon
'Consumer confidence is still weak and recovery remains extremely fragile,' said SMMT chief executive Paul Everitt.
'The SMMT is calling on the Government to extend the scrappage incentive scheme through to the original close date of the end of February 2010, to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of the first-year VED rates.'
It is understood that Lord Mandelson met with representatives of the motor industry today (Friday).
How the scrappage scheme works
In May, £300 million was set aside for the scheme, which promised £1000 from the Government towards the price of a new car, if the car manufacturer matched that with a further £1000.
The scheme was eligible to car buyers who had a 10-year-old car to trade-in.
Scrappage was scheduled to run until the end of February 2010 or until the money ran out. However, it has proved so popular, that the cash is set to run out before the end of the year.
Mandelson urged to extend scrappage - Car and Car-Buying News - What Car?
