28 September 2009
Scrappage scheme gets extension
Peter Mandelson has announced an extension the vehicle scrappage scheme during his speech at the Labour Party Conference.
The move, which has been called for by key figures across the motor industry in the last few months, will extend the budget for the scrappage scheme to cover an extra 100,000 vehicles.
The Scrappage scheme had been due to end in February 2010, or when the original limit of 300,000 vehicles had been reached. To date, nearly 230,000 orders have been placed through the scrappage scheme, and while it is still scheduled to end in February, the move to extend the budget has been a welcome one to the Automotive industry, which will be hoping the extension will go some way to countering the impact of a return to 17.5% VAT in the New Year.
SMMT Cheif Executive Paul Everitt personnally welcomed the announcement:
"This is an extremely important decision that will inspire consumer and business confidence. It will help to stimulate demand, giving more consumers access to it, and create a bridge to a period when economic growth is strengthened and more sustainable.
"The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates."
In further expansions to the scope of the scrappage scheme, the minimum age for vans being scrapped has also been dropped from 10 to 8 years, and the age qualification for cars has moved to include those registered before 29th February 2000.
Experian’s Insight Report, which will contain more analysis on the impact the scheme has had in its first 6 months, will soon be available via this website.