Deloitte has called for the UK Government’s car scrappage scheme to be extended.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Figures released yesterday show that take-up is now over half-way through the allocated funding.
David Raistrick, UK Manufacturing Leader at Deloitte commented: “The scrappage scheme has been a worthwhile initiative which has had a positive impact on the automotive industry. With close to 155,000 new cars ordered through the scheme since its introduction, it has undoubtedly contributed to a turnaround for the industry as evidenced by July’s positive car registration figures.
“The industry has been buoyed by this recent good news; however there is still a real danger that it could suffer another sudden downturn when the scheme ends. Last month’s 2.4% increase represented an increase of just over 3,500 additional cars by comparison to last year. This small increase occurred after the impact of scrappage, which accounted for over 33,000 units, highlighting its instrumental role in the pick-up.
“Given that we have now passed the half way mark I urge the Government to reconsider its decision and extend the scrappage scheme to further stimulate a long-lasting recovery.”
Figures released by the UK Government show that orders under the UK’s car and light van scrappage scheme have hit 154,927 units.
When seen against a spending budget of GBP300m for some 300,000 vehicles between 18 May and 31 March 2010, that suggests that funding take-up is now over the halfway point, but with much more than half of the allocated time period still left to run.
That means that running out of public money to fund the scheme later this year or in early 2010 is a distinct possibility.
