Car scrappage scheme gets underway

The British Chambers of Commerce (BCC) has welcomed the introduction of a new car scrappage scheme, which was announced in last month's Budget.

Under the £300m scheme, consumers who trade in older cars will be offered up to £2,000 off the price of a new model.

38 manufacturers have signed up for the scheme, which is intended to boost consumer confidence and increase demand for new cars.

David Frost, Director General of the BCC, said, 'A scrappage scheme is exactly the sort of policy we need during a recession. It will boost demand and help the environment at the same time'.

'The automotive industry will be central to driving our economy out of recession, and it employs thousands of highly skilled people producing efficient vehicles for the global market. It would be a tragedy to lose these precious skills during this downturn.'

The scheme will operate until March 2010, or until the allocated funds have been exhausted.