Menu
18/05/2009
Car Scrappage Scheme Dealt Blow Amid VAT Row
A Government-scheme where consumers can scrap their old banger for a new model, has been dealt an embarrassing blow after three large manufacturers suspended the scheme.
The £300m scrappage scheme, announced in last month's Budget, is intended to boost consumer confidence and kick-start demand for new cars.
However, Ford, Fiat and Honda were halting deliveries of cars to dealers after a row over who pays VAT on the vehicles, on the day the scheme was launched by Prime Minister Gordon Brown and Lord Mandelson.
The Government and manufacturers are sharing the cost of the scheme, which will last until the end of February 2010 or until the funding runs out.
Thirty eight manufacturers are taking part in the scheme, covering all the major brands.
But, the Society of Motor Manufacturers and Traders confirmed that some firms are now urgently seeking clarification over who will be paying VAT.
Such schemes have worked well overseas, particularly in Germany where new car sales soared 40% in March this year. The UK motor industry is in need of a similar boost, especially as new car sales have fallen for 11 months in a row.
A spokesman for Ford said: "Based on details which have only become apparent late in these negotiations, Ford is working to resolve some outstanding administrative issues but is confident it can begin sales within a few days of the official start date.
"Detailed information on the scrappage scheme was not included in the Budget. However, Ford as leader of the UK vehicle market welcomed it on behalf of customers, industry employees and also for its safety and environmental benefits."
He added: "All manufacturers planning to participate in the scheme have been looking at the precise mechanism for funding their £1,000 contribution towards the total £2,000 incentive offered in return for trading in a 10+year-old vehicle, and discussions with the Business and Enterprise Department have been ongoing since the Budget."
A Honda spokesman also said: "Relating to the £1,000 contribution - the original request was for a contribution of £1,000 from the industry.
"We were looking at splitting that between the manufacturer and our dealers but we're being told that we can't do that."
(JM/BMcC)
The £300m scrappage scheme, announced in last month's Budget, is intended to boost consumer confidence and kick-start demand for new cars.
However, Ford, Fiat and Honda were halting deliveries of cars to dealers after a row over who pays VAT on the vehicles, on the day the scheme was launched by Prime Minister Gordon Brown and Lord Mandelson.
The Government and manufacturers are sharing the cost of the scheme, which will last until the end of February 2010 or until the funding runs out.
Thirty eight manufacturers are taking part in the scheme, covering all the major brands.
But, the Society of Motor Manufacturers and Traders confirmed that some firms are now urgently seeking clarification over who will be paying VAT.
Such schemes have worked well overseas, particularly in Germany where new car sales soared 40% in March this year. The UK motor industry is in need of a similar boost, especially as new car sales have fallen for 11 months in a row.
A spokesman for Ford said: "Based on details which have only become apparent late in these negotiations, Ford is working to resolve some outstanding administrative issues but is confident it can begin sales within a few days of the official start date.
"Detailed information on the scrappage scheme was not included in the Budget. However, Ford as leader of the UK vehicle market welcomed it on behalf of customers, industry employees and also for its safety and environmental benefits."
He added: "All manufacturers planning to participate in the scheme have been looking at the precise mechanism for funding their £1,000 contribution towards the total £2,000 incentive offered in return for trading in a 10+year-old vehicle, and discussions with the Business and Enterprise Department have been ongoing since the Budget."
A Honda spokesman also said: "Relating to the £1,000 contribution - the original request was for a contribution of £1,000 from the industry.
"We were looking at splitting that between the manufacturer and our dealers but we're being told that we can't do that."
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
24 February 2010
Car Scrappage's 'Exit Phase' Begins
The final phase of the Government's scrappage scheme began today. Business Secretary Lord Mandelson has reminded would-be car buyers to take advantage of the scheme before it closes.
Car Scrappage's 'Exit Phase' Begins
The final phase of the Government's scrappage scheme began today. Business Secretary Lord Mandelson has reminded would-be car buyers to take advantage of the scheme before it closes.
04 February 2010
Car Scrappage Scheme Extended
An extra month has been added to the deadline for the Government Scrappage Scheme. This move will provide manufacturers and dealers more time to prepare for and operate the exit phase of the scheme. Government ministers said their decision was prompted by requests from car manufacturers for more time to prepare dealers and inform consumers.
Car Scrappage Scheme Extended
An extra month has been added to the deadline for the Government Scrappage Scheme. This move will provide manufacturers and dealers more time to prepare for and operate the exit phase of the scheme. Government ministers said their decision was prompted by requests from car manufacturers for more time to prepare dealers and inform consumers.
24 February 2009
Trawlermen Consultation Launched
The Government today launched a consultation on its new scheme to compensate trawlermen who lost their livelihoods following the 1970s 'Cod Wars'. The consultation runs until 22 May. The Government intends to open the new scheme to applications in the summer.
Trawlermen Consultation Launched
The Government today launched a consultation on its new scheme to compensate trawlermen who lost their livelihoods following the 1970s 'Cod Wars'. The consultation runs until 22 May. The Government intends to open the new scheme to applications in the summer.
03 March 2005
Defra launches farmland conservation scheme
A new scheme enabling English farmers to be paid for environmental work on their farms is to be launched in the spring.
Defra launches farmland conservation scheme
A new scheme enabling English farmers to be paid for environmental work on their farms is to be launched in the spring.
20 July 2012
Sex Offenders Lie Detector Scheme 'To Be Rolled Out'
Following a successful pilot scheme mandatory polygraph testing for sex offenders is set to be rolled out across England and Wales, ministers say. The scheme found offenders who were tested were more honest and gave better information, which meant they were managed more effectively.
Sex Offenders Lie Detector Scheme 'To Be Rolled Out'
Following a successful pilot scheme mandatory polygraph testing for sex offenders is set to be rolled out across England and Wales, ministers say. The scheme found offenders who were tested were more honest and gave better information, which meant they were managed more effectively.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
