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Motoring news

'£2,000 to scrap cars' decision due in Budget

14/04/2009

Motorists are widely expected to benefit from a £2,000 Government incentive to trade in their old cars for new ones.

The plan, which Prime Minister Gordon Brown will reportedly decide on ahead of next week's Budget, is designed to give a shot in the arm to the ailing UK car industry - while encouraging drivers of polluting older models to take up newer, greener options.

Figures for last month revealed that car sales had fallen by 30% compared to March 2008, as even the arrival of new '09' plates failed to tempt recession-struck buyers to part with their money.

Though details of a proposed scheme are yet to be revealed, the industry itself has called for a scheme similar to the one implemented in Germany, where sales have picked up by 40% since drivers were offered around £2,250 for trading in a model more than nine years old.

According to The Times, Chancellor Alistair Darling has asked Business Secretary Peter Mandelson for proof that the scheme would work, though Mr Brown is expected make the final decision.

But Peter Cranie of the Green Party questioned the proposal's green credentials.

"This scheme won't create jobs and it won't help the environment," he told the BBC.

"All that you're going to get is a switch to more polluting, bigger vehicles. And that's not going to help anyone."