The UK’s scrappage incentive scheme will not be extended again, despite improved sales.
In September, business secretary Lord Mandelson announced that the incentive would be extended for a further 100,000 cars.
It will mean an extra £100m from the government towards the scheme.
But despite buoyant sales figures since scrappage was introduced the Department for Business, Innovation and Skills has told Autocar there will be no further extension.
“Industry and Government are agreed that the scrappage scheme will remain limited and will close at the end of February 2010 at the latest, as originally planned,” said a spokesman, “it will not be extended beyond this.”
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Re: No more extensions for scrappage
yep.....at this time, and in a globalised economy, trade is trade....one economy growing, in hyundais case, south korea, has a positive impact around the world....
its unforunate we dont make much here anymore, but that was a decline speeded up by thatcher in the 80s when she decided financial services would be king....
considering how big a proportion of our economy is services based, it would be interesting to see if hyundais sales growth in the UK creates net growth for GDP after revenue from the cars has been transferred back to korea...
Re: No more extensions for scrappage
Hang on.... the cheapest hyundai i10 is £6750 so i make that £1012.50 of vat (most will add about £300 for metalic paint) the 2k comes off the inc vat price. so that means its costing the goverment nothing.
infact they are well up as you have income tax on the staff at the dealership, the transport driver, and the people that work for hyundai uk. not to mention the tax on fuel of the transporter that brought them to the dealerships. that they would not have received if there was no scrappage. i think some peoples veiws are a little short sighted at times.
Re: No more extensions for scrappage
i believe standard and poor have improved our outlook to 'stable', citing our 'dynamic' economy as one of the main reasons for this.
where there is pessimism, there is also optimism.
but thats not as much fun.
just a thought....without discussing the reasons for being in this situation, without this current level of national debt, its highly likely many of us wouldnt be able to afford the means to spout our opinions online...or that we would be debating new car sales rises...from the comfort of our warm houses...
it could have so easily been worse....we know the conservatives will regain market confidence in the mid term, and the world never stopped turning- we still have, albeit wounded, a financial system.
simplistic yes....but not a repeat of the desecration of communities in the 30s we could have had.