The UK Government seem to be backing off of a plan to launch a new vehicle scrappage scheme that was set to boost sales and stimulate the UK Car Industry and Economy.
The scheme announced in June 2020 would have offered incentives to switch from old petrol and diesel cars to new electric and hybrid vehicles.
The financial times reported that there is no guarantee the scheme will be launched and some senior officials now saying it was “very unlikely” the scheme would be launched.
There has been no official word from the government and the report will certainly deter some from pushing ahead with buying a new car. Many are holding off in hope of a post-lockdown plan / offer from the government some studies have shown almost 30% of potential buyers are now holding off.
Many buyers are keen to buy a more economical and environmentally friendly vehicle and a government scheme would certainly go a long way to getting the UK car industry moving again after sales almost completely died off between April – May.
The impact on the UK automotive industry has of course been catastrophic and the industry has called for a dedicated “restart package” to drive consumer demand including scrappage and VAT cuts.
Mike Hawes, the SMMT chief executive, said: “UK automotive is fundamentally strong. However, the prolonged shutdown has squeezed liquidity and the pressures are becoming more acute as expenditure resumes before invoices are paid.
“The government’s intervention has been unprecedented. But the job isn’t done yet.
“Just as we have seen in other countries, we need a package of support to restart; to build demand, volumes and growth, and keep the UK at the forefront of the global automotive industry to drive long-term investment, innovation and economic growth.”