UK scrappage scheme extended by 100,000 vehicles 29th September 2009
Lord Mandelson announced yesterday (28th September) that the UK government will extend the £300 million scrappage scheme currently operating in the country.
Chancellor Alistair Darling had originally claimed in April that the incentives would last until next February or until the Treasury pot was emptied - whichever arrived sooner.
There were fears that the money would run out by as early as next month, but the business secretary confirmed that another 100,000 vehicles will now be covered.
"Today, I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans," he said at the annual Labour party conference.
"The extension means the scheme could potentially run well into next year."
Under the terms of the initiative, owners of cars which are over ten years old can receive a £2,000 discount if they trade them in when buying a new, more fuel-efficient model.
The news was welcomed by the Confederation of Business Industry, which was one of many groups lobbying the government to provide further support to boost auto sales.
Deputy director general John Cridland told the Daily Telegraph: "The automotive sector is a vital and vibrant part of the UK's manufacturing base.
"With the economy still fragile, the government is right to extend the scrappage scheme to help carmakers through this challenging period."
Official figures released earlier this month revealed that UK auto sales increased by six per cent on a year-on-year basis to 67,006 units during August.
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