UK car scrappage scheme hits snag
The UK government’s latest attempt to help the environment and recycle more and more products has hit the buffers with news of a significant fall out between car manufacturers and car retailers with regards to the UK government’s car scrappage scheme. The scheme, which sees up to £2000 paid for those scrapping their old vehicles and buying a new one, is part funded by the government and part funded by the car industry.
Yesterday was day one of the scheme and immediately it became apparent there were problems when car manufacturers and car retailers began to argue about the VAT payment on their £1000 share of the payment. As a consequence we saw a number of car manufacturers suspend their involvement in the scheme and suspend the delivery of cars ordered as part of the scheme. While there are hopes that the scheme will be up and running again over the next few days, this has been a significant embarrassment to the UK government and its recycling policy, and yet again highlights the fact that business very much comes before recycling and the environment.
We have seen similar car scrappage schemes across the world with countries in Europe very active in this particular field. While results to date have been mixed there is certainly some credence in the scheme and the opportunity to rid the roads of many uneconomical and environmentally unfriendly vehicles has been welcomed with open arms.