Mandelson praises response to car scrappage scheme
Today sees the implementation of the government's new car scrappage scheme, which was unveiled in last month's Budget.
Motorists who part with cars aged over ten years old that they have owned for at least 12 months will be entitled to a £2,000 discount on their next vehicle.
The move has been welcomed by the British Chambers of Commerce, which said this would encourage people to buy new cars during the current economic slump.
David Frost, director of the organisation, commented: "A scrappage scheme is exactly the sort of policy we need during a recession."
"It will boost demand and help the environment at the same time."
Mr Frost added that the benefits of the scheme will be good for the wider economy, as the automotive industry will be "central" to fuelling future growth.
The Society of Motor Manufacturers and Traders has also backed the policy, although it believes any signs of its success will not be apparent until June's monthly sales figures are published.
