Tax boost for car sales rejected

THE LONDON MOTOR SHOW

RUSSELL HOTTEN

Ian Lang, President of the Board of Trade, yesterday disappointed the motor industry by rejecting calls for tax incentives to boost the sale of new cars.

Leading executives had asked the Government to introduce a so-called scrappage subsidy, to encourage motorists to trade in old cars for new ones, in next month's Budget. But Mr Lang, whose Motor Show press conference was abandoned in disarray after protests by anti-car demonstrators, said: "There is no intention to start a scrappage subsidy."

His comment is the clearest statement yet of the Government's position after the Society of Motor Manufacturers and Traders submitted proposals for a subsidy to the Chancellor last month. One car executive said yesterday: "If Mr Lang can't see the sense of a subsidy, then no one in the Government is going to push it through."

A scrappage tax in France has boosted sales by an estimated 240,000 and has also been successful in Spain. Ian McAllister, chairman of Ford UK, has been a strong supporter of a subsidy for scrapping cars aged 10 years or older, saying this week that it would improve the environment if more old cars were taken off the road.

The RAC estimates that the number of cars on the road that were more than 10 years old rose to 7.4 million last year from 4.9 million in 1986 because the recession had suppressed consumer demand. Richard Parham, managing director of Peugeot UK, has proposed a graded subsidy of between pounds 500 and pounds 800 depending on the size of new car bought.

Not everyone in the industry was concerned by Mr Mr Lang's comments. Charlie Golden, managing director of Vauxhall, believes a subsidy would be a short-term gimmick. And John Towers, chief executive of Rover, said: "If the industry sells on just one point of advantage - price - then we are wasting our time."

Meanwhile Alex Trotman, chairman and chief executive of Ford, warned of the threat posed by South Korean car manufacturers. With companies like Daewoo making significant inroads in Europe, Mr Trotman described the country as the new Japan.

He said that 100,000 cars were exported from South Korea to Europe last year, but the target was to reach 500,000 by the end of the decade. This new "hyper competition" would be "far tougher than anything anyone has experienced in the past, here in Britain, in the US, or wherever."

Sport
formula oneLive lap-by-lap coverage of championship decider
News
Boxing promoter Kellie Maloney, formerly known as Frank Maloney, entered the 2014 Celebrity Big Brother house
people
Arts and Entertainment
tvStrictly presenter returns to screens after Halloween accident
News
video
PROMOTED VIDEO
News
peopleFormer civil rights activist who was jailed for smoking crack cocaine has died aged 78
Arts and Entertainment
Jerry Hall (Hand out press photograph provided by jackstanley@theambassadors.com)
theatre
Arts and Entertainment
tv
Arts and Entertainment
Carrie Hope Fletcher
booksFirst video bloggers conquered YouTube. Now they want us to buy their books
Arts and Entertainment
Damien Hirst
artCoalition's anti-culture policy and cuts in local authority spending to blame, says academic
Sport
premier leagueMatch report: Arsenal 1 Man United 2
Arts and Entertainment
Kirk Cameron is begging his Facebook fans to give him positive reviews
film
News
ebooksNow available in paperback
News
i100
Life and Style
Small winemakers say the restriction makes it hard to sell overseas
food + drink
Arts and Entertainment
Jason goes on a special mission for the queen
tvReview: Everyone loves a CGI Cyclops and the BBC's Saturday night charmer is getting epic
Sport
Jonny May scores for England
rugby unionEngland 28 Samoa 9: Wing scores twice to help England record their first win in six
Life and Style
fashionThe Christmas jumper is in fashion, but should you wear your religion on your sleeve?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Reach Volunteering: Trustee – PR& Marketing, Social Care, Commercial skills

Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...

Reach Volunteering: Charity Treasurer

Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...

SThree: Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...

Ampersand Consulting LLP: Markit EDM (CADIS) Developer

£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...

Day In a Page

Mau Mau uprising: Kenyans still waiting for justice join class action over Britain's role in the emergency

Kenyans still waiting for justice over Mau Mau uprising

Thousands join class action over Britain's role in the emergency
Isis in Iraq: The trauma of the last six months has overwhelmed the remaining Christians in the country

The last Christians in Iraq

After 2,000 years, a community will try anything – including pretending to convert to Islam – to avoid losing everything, says Patrick Cockburn
Black Friday: Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Britain braced for Black Friday
Bill Cosby's persona goes from America's dad to date-rape drugs

From America's dad to date-rape drugs

Stories of Bill Cosby's alleged sexual assaults may have circulated widely in Hollywood, but they came as a shock to fans, says Rupert Cornwell
Clare Balding: 'Women's sport is kicking off at last'

Clare Balding: 'Women's sport is kicking off at last'

As fans flock to see England women's Wembley debut against Germany, the TV presenter on an exciting 'sea change'
Oh come, all ye multi-faithful: The Christmas jumper is in fashion, but should you wear your religion on your sleeve?

Oh come, all ye multi-faithful

The Christmas jumper is in fashion, but should you wear your religion on your sleeve?
Dr Charles Heatley: The GP off to do battle in the war against Ebola

The GP off to do battle in the war against Ebola

Dr Charles Heatley on joining the NHS volunteers' team bound for Sierra Leone
Flogging vlogging: First video bloggers conquered YouTube. Now they want us to buy their books

Flogging vlogging

First video bloggers conquered YouTube. Now they want us to buy their books
Saturday Night Live vs The Daily Show: US channels wage comedy star wars

Saturday Night Live vs The Daily Show

US channels wage comedy star wars
When is a wine made in Piedmont not a Piemonte wine? When EU rules make Italian vineyards invisible

When is a wine made in Piedmont not a Piemonte wine?

When EU rules make Italian vineyards invisible
Look what's mushrooming now! Meat-free recipes and food scandals help one growing sector

Look what's mushrooming now!

Meat-free recipes and food scandals help one growing sector
Neil Findlay is more a pink shrimp than a red firebrand

More a pink shrimp than a red firebrand

The vilification of the potential Scottish Labour leader Neil Findlay shows how one-note politics is today, says DJ Taylor
Bill Granger recipes: Tenderstem broccoli omelette; Fried eggs with Mexican-style tomato and chilli sauce; Pan-fried cavolo nero with soft-boiled egg

Oeuf quake

Bill Granger's cracking egg recipes
Terry Venables: Wayne Rooney is roaring again and the world knows that England are back

Terry Venables column

Wayne Rooney is roaring again and the world knows that England are back
Michael Calvin: Abject leadership is allowing football’s age-old sores to fester

Abject leadership is allowing football’s age-old sores to fester

Those at the top are allowing the same issues to go unchallenged, says Michael Calvin