The Retail Motor Industry Federation (RMIF) has joined the Society of Motor Manufacturers and Traders (SMMT) in calling for the implementation of a pay-to-scrap scheme in the UK as soon as possible.
The proposed scheme would involve a government subsidy of up to £2000 for people trading in a car at least nine years old for a new car, or a secondhand one under 12 months old.
“The fact that the government is continuing to seriously consider the implementation of a vehicle scrappage scheme in the UK is encouraging,” RMIF director Sue Robinson said. “But it must act soon as the lack of action could have serious long-term consequences for the motor industry in the UK”.
Some estimates suggest that a scrappage scheme could boost the UK car market by up to 250,000 units annually.
Critics, however, suggest that this would only be a significant boost for the retail industry, since the UK car manufacturing sector exports 86 per cent of its output.