It’s time for the government to step up a gear on scrappage

Here's a mid-term report for the scrappage scheme. It is working. But could do better.

Dealers are reporting increased footfall and orders since the scheme was launched. Ford alone reckons on taking 300 orders a day and having bagged 12,000 orders since the scheme started.

The increase in sales will start to filter through in the June registration figures and by September we might start to see the market outperforming 2008 for the first time.

The scheme is delivering on several levels. Older cars -- with higher C02 emissions and fuel consumption than there modern counterparts -- are being taken off the road, thus fulfilling the green agenda; the UK automotive sector is receiving a welcome boost, which helps all of us; and some customers can afford to get back into the new car market.

Now's the time for the government to seriously extend the scheme beyond its £330m cap.

The government's contribution is self funding from the VAT is raises. Now's the time to extend the scheme indefinitely and extend it to include Sorn vehicles. Over to you Lord Mandelson...

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