Our website uses cookies

We use cookies to give a better service online. By using our website or closing this message, you are agreeing to our Cookie Policy.

X

Choose a product

Three great products to suit your needs, please choose an option below.

1 Car

Great value car insurance quotes crammed with plenty of features.

2+ Cars

Combine cars on one policy for MultiCar discounts.

New or Young Driver

LittleBox is a great way for new drivers to get awesome discounts.

Multi Car Insurance

Combine cars on
one policy for
Multi Car discounts.

Start a quote
Find out more
Retrieve a quote

Single-Car Insurance

Great value insurance
crammed with
plenty of features.

Start a Quote
Find out more
Retrieve a quote

Give us a call

Single-Car Insurance

0844 543 4416

MultiCar Insurance

0844 848 4316

Home Insurance

0800 600 870

Back to Motoring news

Motoring news

Government 'examining' car scrappage scheme

25/02/2009

The Government is examining a scheme to promote the scrapping of older cars "very carefully indeed", according to the group representing UK car dealers.

The Retail Motor Industry Federation (RMIF) met yesterday with Exchequer Secretary Angela Eagle to discuss RMIF proposals for a scheme that would see owners of older cars and light vans awarded a discount on a new vehicle, in return for scrapping their old one.

Business Secretary Lord Mandelson indicated in a speech at the beginning of February that he was considering scrappage incentives as a way to aid the UK's struggling car industry.

Such schemes have been introduced in other European states including France and Germany, while a similar framework proposed in the United States was withdrawn from the economic stimulus plan earlier this month.

"The introduction of a scrappage scheme for nine-year-old vehicles could create a demand for up to 250,000 new vehicles [and] remove an equal number of old and more heavily polluting vehicles from our roads for ever," RMIF chairman Paul Williams said.

However, some have expressed doubt at the environmental benefits of encouraging people to scrap more cars. Writing in the Guardian after Lord Mandelson's speech, columnist George Monbiot said that a scrappage incentive was a subsidy to one of the country's most polluting industries, crudely disguised as an environmental measure.

"Were the same money to be invested in public transport networks, bicycle lanes, offshore windfarms, high-voltage direct current lines and other such neglected sectors, the carbon reductions per pound would be many times greater," he added.

Last week, industry figures showed that car production in the UK had more than halved compared to the same time last year.

 

Share with your friends

Motoring news archive

Search our archive of Motoring news by date.

RSS feed

You can subscribe to receive the latest motoring news from Admiral with RSS.

Motoring news RSS feed

Help us improve our website

Pleas provide feedback on our website. Is it easy to use? Does it contain all the information you need?

Errors on form:

Your details

Your suggestion

Thank you

Thank you for your feedback on our website

Close

Processing - please wait