Car Scrappage Scheme To Be Extended

Lord Peter Mandelson(BBC) – THE UK’S CAR SCRAPPAGE SCHEME is to be extended, Lord Mandelson has announced.

He said the scheme, which started in May and gives consumers £2,000 off a new car if they trade in one at least 10 years old, was running out of money.

The business secretary broke the news, called for by the car industry, in his speech to the Labour Party conference.

He said, ‘We cannot do everything but that does not mean doing nothing’ and said the scheme would be extended to cover 100,000 more cars and vans.

The £300m initiative had been due to end in February, or when the limit of 300,000 vehicles being scrapped was reached.

So far 227,750 orders have been placed through the scheme, which, at a cost to the government of £1,000 per car, means £227m has been spent. The extension means a total £400m will have been committed to the scheme, which will still end in February at the latest.

Other modifications to the scheme will see the age qualification changed by six months to any car registered before 29 February 2000, and cut the minimum age of vans being scrapped from 10 years to eight years.

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