Government considers £6,000 vehicle scrappage scheme

Announcement expected to be made on 6 July after third phase of lockdown easing

Government considers £6,000 vehicle scrappage scheme
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The UK government is set to introduce a new scrappage scheme offering drivers discounts of up to £6000 to switch from petrol and diesel to electric or hybrid cars, latest reports suggest.

Full details of how the scheme would work have not emerged yet but an announcement is expected to be made on 6 July, shortly after the third phase of lockdown easing is due to come into effect.

However, the Independent Automotive Aftermarket (IAAF) has warned that a new scrappage scheme would have a “significantly negative effect” on the automotive aftermarket.

The 2009 scrappage scheme removed 400,000 serviceable vehicles from the aftermarket.

Related: New scrappage scheme would put aftermarket at “great risk”, IAAF warns

The IAAF fears employment in the independent automotive aftermarket would be damaged by a scrappage scheme and jeopardise thousands of repair businesses.

Last week a leaked letter sent to Chancellor Rishi Sunak from the SMMT proposed a scrappage scheme which would cut £2,500 off the price of a new car to prompt a further 600,000 new vehicles enter the road.

10/6/20 UPDATE: The Financial Times has today reported that four senior officials have now said it’s “unlikely” such a scheme will be launched.

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Home Page Forums Government considers £6,000 vehicle scrappage scheme

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  • #196706 Reply

    The UK government is set to introduce a new scrappage scheme offering drivers discounts of up to £6000 to switch from petrol and diesel to electric or
    [See the full post at: Government considers £6,000 vehicle scrappage scheme]

    #196762 Reply
    Belinda Teasdale
    Guest

    The six month mot extension is bad enough on affecting business coming through the doors.
    A £6000.00 scrappage scheme would be the final nail in the coffin.
    Is the government determined to put all small businesses into liquidation ???

    #196773 Reply
    Neil Osman
    Guest

    A scrappage scheme will damage the aftermarket but encourage the sale of less polluting vehicles mainly manufactured outside the UK. Didn’t the government ought to be spending on supporting our manufacturing not that of Japan, Korea and the EU.
    £6000 is crazy, £1000 would help the showrooms start moving and not cause too much problem in the aftermarket.

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