Government urged to boost car market in budget

Mar 30 2009

Chancellor Alistair Darling has been called on to ensure that the car industry gets a good boost in this year's budget and the industry is given the support it needs to stimulate sales again.

The Society of Motor Manufacturers and Traders (SMMT) believes that the government needs to inject some impetus into the car industry in this year's budget to kick-start the sector into life and get more people buying vehicles.

Among a range of suggestions put forward by the SMMT for inclusion in this year's budget is the possibility of improved access to finance for motorists, which would give them an incentive to buy a new or used car.

"The UK motor industry is reaching a state of emergency and the rate of government action is crucial to the future success of the sector," warned SMMT chief executive Paul Everitt.

"Government must use the budget to boost consumer confidence and kick-start the market with a scrappage incentive scheme to encourage private sales and tax changes to generate business sales," he added.

Earlier this month, the Retail Motor Industry Federation said a scrappage scheme is needed in the UK immediately.

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