Darling 'considering' scrappage scheme
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The chancellor Alistair Darling is considering a scrappage scheme in the run-up to the budget announcement next week, it has been reported.
Although there has been no official confirmation that a scrappage scheme will go ahead, spokesmen for both the Treasury and the Department for Business, Enterprise and Regulatory Reform (BERR) have claimed that it is being considered.
A Times report on Saturday (April 11th) quoted a BERR spokesman as saying: "Officials from both departments are continuing to look at the possibilities of such a scheme. However, no decision has yet been taken."
Paul Everitt, chief executive of the Society for Motor Manufacturers and Traders, said that "a scrappage scheme will provide the incentive needed [to boost the car manufacturing sector]".
"The evidence is clear that schemes already implemented across Europe do work to increase demand. The UK is the only major European market not to implement a scheme," he added.
Scrappage schemes are deals in which owners of older cars are offered a discount on a new vehicle in return for them scrapping their current vehicle.
Such deals are likely to increase demand for new cars and therefore ease the pressure felt by the manufacturing sector at present.
