Business Secretary Lord Mandelson has announced an extension to the scrappage scheme in a Labour Party Conference speech which heavily advocated an increased emphasis on manufacturing.

The original £300m pot for the scrappage scheme – which offers a £2,000 discount to buyers of new cars when they scrap one over ten years old (£1,000 each from gov. and manufacturer) – is set to run dry next week. But Mandelson has this afternoon announced that another 100,000 sales will be catered for through the programme.

He and Chancellor Alistair Darling had been lobbied by trade bodies including EEF, the manufacturers’ organisation, the Society of Motor Manufacturers and Traders (SMMT), and the British Chambers of Commerce to not let the programme end. The organisations warned that the increased demand inspired by the scheme would not remain without it.

And their pressure has paid off.

“Our car scrappage scheme has been so successful the money is running out,” said Mandelson. “The industry has asked that the scheme be topped up. Conference, we cannot do everything but that does not mean doing nothing. So today I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans.”

The programme is now extended to include Cars registered up to 29th February 2000 (V-reg) and Vans up to 28th February 2002 (51-reg).

Why not contact us now to see if your car is eligible in the extended scrappage scheme?