Scrappage scheme to be extended by 1 month

The BBC has reported that the UK car scrappage scheme is to be extended for a further month.

It was due to finish this month (February), but it is understood the government will announce tomorrow (Thursday) that the subsidy will run until the end of March.

No extra money is being made available by the government, simply extra time for the scheme to operate.

Under its provisions, drivers of cars at least 10 years old get £2,000 off the price of a new vehicle.

The government has put a total of £400m into the scheme, which started in May of last year, with a limit of 400,000 vehicles that can be scrapped.

According to the government, some 330,000 new cars have been ordered under the programme, which means 70,000 people will still be able to benefit.

"Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most," said Business Secretary Lord Mandelson.

"If you're considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited."

Source: BBC News