The British car industry has called on chancellor Alistair Darling to announce more support for it in Wednesday's pre-Budget Report.
A series of measures to help the industry have so far been successful, with November's car sales figures showing a 58 per cent rise year-on-year, thanks in part to the scrappage scheme and reduced VAT.
However, both these benefits are set to be removed during the course of 2010, prompting the Society of Motor Manufacturers and Traders to call for more support.
Reports say thsi will take the form of the SMMT writing to the chancellor, asking him to maintain the lower 15 per cent VAT rate into 2010.
SMMT chief executive Paul Everitt said: “We are urging the Government to use its Pre-Budget Report to sustain the recovery by stimulating demand in key parts of the new vehicle market.”