The Car scrappage scheme aimed to crush cars up to ten years old for a £2,000 subsidy gets yet another extension, with funds worth £100 million being injected into the scheme. The scheme was introduced in May and will continue until February or till the disbursement of planned £300 million subsidy for purchasing new cars.
The Business Secretary Lord Mandelson, while speaking at the Labour Party Conference, said: “We must make sure that the help we do offer is targeted, limited and proportionate. This is not a blank cheque to the auto manufacturers.”
The Society of Motor Manufacturers and Traders (SMMT) claimed that extra 100,000 new cars may be covered under the scheme to remain in force till February. Car owners up to registration date of February 2000 can claim subsidy against earlier provisions of before August 31, 1999.
The scheme is also applicable to Van owners having eight years old cars against previous limit of ten years. Paul Everitt, Chief Executive of the SMMT, said: “The additional 100,000 vehicles should help to counter the likely negative impacts of a return to higher VAT and the introduction of first-year VED [vehicle excise duty] rates.”