No Government scrappage scheme announced in 'mini Budget'

Published 09 July 2020

Despite reports that the Government was reportedly considering an electric vehicle scrappage scheme, the mini Budget announced by Chancellor Rishi Sunak failed to include the expected scheme. 

The package of measures aimed to boost the UK economy in the wake of the coronavirus pandemic include plans to pay businesses a £1000 job retention bonus for every furloughed worker that is brought back. But moves to incentivise the car industry have been ignored - including a scrappage scheme and cuts to VAT on vehicles.

>>> Your guide to the best 2020 UK scrappage schemes and deals

"Today’s announcements to safeguard jobs and encourage consumer spending in some parts of the economy are welcome – but it’s bitterly disappointing the Chancellor has stopped short of supporting the restart of one of the UK’s most important employers," said Society of Motor Manufacturers and Traders (SMMT) Chief Executive Mike Hawes. 

"Of Europe’s five biggest economies, Britain now stands alone in failing to provide any dedicated support for its automotive industry, a situation that will only deter future investment."

The Summer Statement includes plans to help the hospitality, housing and jobs markets specifically - with some green incentives also announced.

Sunak pledged to "protect, support and create jobs", and get pubs and restaurants "bustling again". The Chancellor announced that meals eaten at participating businesses from Monday to Wednesday in the month of August will be 50 per cent off at up to £10 per head.

Some £30bn has been set aside to help the jobs market, while a £3bn package for green investment to help create thousands of jobs was also announced. Around £1bn has been earmarked to help make public sector buildings greener.



conman    on 11 July 2020

Chief Executive Mike Hawes think outside the BOX.!!!!!!!! The scrappage scheme would only help the economies of France, Germany, Spain, etc as we make virtually no EV cars in the UK. Now if the Government had only got it's finger out and encouraged Tesla to build it's Giga Factory in the UK (4-6000 new high tech. jobs) rather than Germany ( built with massive EU cheap loans) that would be a different matter. The only way the Government can help the UK motoring industry is to implement a scrappage scheme that is only applicable to vehicles manufactured in the UK. That may at least go a little way to stop the closure of the Vauxhall, Nissan and Toyota plants here. Even apply the scrappage to ICE vehicles because there virtually the only ones manufactured here and are still going to be made till 2035. As can been seen after the pandemic it will be factories owned by foreign countries that are closed her not in their own countries. If the government does the above Chief Executive Mike Hawes would be jumping for joy and doing backward somersaults because the future for the UK motor industry would look great.

Edited by conman on 11/07/2020 at 14:00

   on 14 July 2020

I agree with CONMAN, this government lacks foresight and always has. We hardly manufacture anything in this country, yet we give MILLIONS to help other countries, and some have their own (SPACE PROGRAMS ), I don't understand. ,,

GTD 184    on 14 July 2020

The Tories have always been a 'service sector' government hence the decline in our manufacturing industries. Scrapage shemes are not the solution as those whose cars that are likely to meet the scrappage scheme criteria are going to be older cars worth virtually nothing. These people are likely not to have the large deposits needed for EV ownership and are not going to get themselves into large scale debt to purchase a new vehicle with a promise of £2,000 off a new vehicle of which any customer regardless of scrappage can negiotiate with all dealers. WHat is needed is a VAT cut of at least 5%. What Sunak has failed to see is that by reducing the VAT on new cars not only does it kickstart the auto industry but the government stand to gain massive revenues from VAT and tax which far outweighs the very little revenue they are reaping at the moment with flat new car sales and high second hand car sales! Just like the Covid outbreak in which the government failed to implement a lock down until the last hour, Boris and co will wait until there are mass redundancies in the automotive sector until they pull their finger out and offer an incentive to get customers back in to the showrooms.

Edited by GTD 184 on 14/07/2020 at 14:24

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