Mandelson Warns UK May Face Second Recession, Says No Plans To Extend Car Scrappage Scheme

Sponsored Links

There is always a risk of a second recession for the British economy, Business Secretary Peter Mandelson said Wednesday.

He told the BBC Radio 4 that there are signs that the UK economy is emerging from the recession.

He also noted that the government will not extend the car scrappage scheme, despite calls to continue the programme from car manufacturers.

The British car scrappage scheme offers an incentive of GBP 2,000 to motorists who buy a new car, scrapping their old vehicles, which are used for more than ten years. The scheme that was introduced in May 2009 lasts until end February 2010, or until government funding of GBP 300 billion runs out. The funding is available to scrap up to 300,000 vehicles.

As a result of the scheme, new car sales in the UK rose for the second straight month in August. According to the Society of Motor Manufacturers and Traders Limited, 102,071 vehicles have been registered under the scrappage scheme since its introduction.

There is always a risk of a second recession for the British economy, Business Secretary Peter Mandelson said Wednesday. He told the BBC Radio 4 that there are signs that the UK economy is emerging from the recession. (Market News Provided by RTTNews)