Extension for car scrappage scheme

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Motorists seeking a new cut-price vehicle and new car insurance policies will be relieved to hear that the Government has announced plans to extend the car scrappage deal by a further 100,000 units.

Announcing the plan to huge cheers from delegates at the Labour Party Conference in Brighton, Business Secretary Lord Mandleson said: "Recovery remains fragile and uncertain, especially in manufacturing and one of its cornerstones, the car industry."

"Our car scrappage scheme has been so successful the money is running out. The industry has asked that it be topped up.

We cannot do everything, but that does not mean doing nothing, so today I am extending our scheme with extra money for an additional 100,000 cars and vans."

The announcement has been praised by industry bodies and trade unions, both of whom had called for such a move in recent weeks.

TUC general secretary Brendan Barber described the initiative as "very welcome", but added: "The economy is still in a very fragile state. Cutting off support of this kind or making cuts in spending could easily choke off the few precarious signs of recovery."

© Press Association 2009

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