The government has announced that the car scrappage scheme is to be extended, but is it actually working?
Well, let’s look at some of the facts before reaching a decision.
100,000 new cars have been registered under the scheme already and a further 100,000 are in the pipeline. Importantly, 70% of these sales would not have happened in 2009 without the scheme.
This surge in business has protected an estimated 850,000 jobs in the car and associated industries
So who has benefited from this scheme? Well actually, almost everyone as it has strengthened the economy (which helps us all), supported a struggling major industry and even the government benefits as this scheme is self funding via the increased VAT it generates.
The environment benefits too. Average CO2 emissions of cars bought under the scheme in the UK is 15% lower than the pre-scrappage market average.
So to answer my question about whether the car scrappage scheme is working, I think the answer is yes it is and it’s good that the scheme is being continued.
It reminds me about another scheme that is a win win situation all round – the Cycle to Work Scheme.