Combine cars on
one policy for
Give us a call
0844 543 4416
0844 848 4316
0800 600 870
Motoring news search
Search our archive of Motoring news.
Motoring news archive
Search our archive of Motoring
news by date.
You can subscribe to receive the latest motoring news from Admiral with RSS.
Chancellor confirms scrappage scheme for older cars
Owners of cars that are more than 10 years old will be offered £2,000 to trade them in for a new vehicle, under plans outlined in today's Budget.
The much-anticipated scheme was confirmed by the chancellor, Alistair Darling, who said that it would run from next month until March 2010. The Government will provide £300 million funding, with participating manufacturers expected to match its investment.
The Society of Motor Manufacturers and Traders, which has made repeated calls for such a scheme, called the announcement "good news for buyers".
Chief executive Paul Everitt said that scrappage payments would kick-start demand in the market, but the scheme has not been universally welcomed.
"The scrappage scheme announced today risks consigning a lot of perfectly good, and relatively clean, vehicles to the dustbin," said director of the RAC Foundation, Professor Stephen Glaister.
"And whilst the announcement is good for motorists and the motor industry, if it does not encourage people to buy green vehicles it is a missed opportunity as far as the environment is concerned."
Green organisations were more outspoken in their criticism. "Car scrapping schemes are good for boosting new car sales," said a spokesperson for the Environmental Transport Association.
"They have very little to do with the environment and to suggest otherwise is not just greenwash, it is hogwash."
Elsewhere in his Budget, the chancellor announced a 2p fuel-duty increase from September, followed by additional rises in April for the next four years.