The motor trade is pressing the government to introduce new scrappage schemes. Such initiatives aim to rejuvenate the economy and support various sectors, not just the automotive industry.
A push for scrappage schemes comes as the industry seeks to replace old vehicles with low-emission models. It also wants an expansion beyond cars to include technology and machinery.
The Demand for Scrappage Schemes
The motor industry has been urging ministers to replicate the £750 million scrappage schemes, which previously helped revive the sector during the last recession. The focus now includes swapping old vehicles for new, low-emission cars, both petrol and diesel.
The Society of Motor Manufacturers and Traders (SMMT) has asked the government to back the entire market without favouring specific segments or technologies. It highlights the need to support various vehicle technologies to ensure no market segment is left behind.
Challenges with Electric Vehicles
There are concerns that focusing solely on electric cars might not be effective. Robert Forrester, CEO of Vertu Motors, argued that electric cars are pricey, and the average British consumer is financially constrained.
Mr Forrester emphasised the importance of replacing older petrol and diesel cars to combat nitrogen oxide pollution. He believes prioritising these changes could be more beneficial for the environment.
Criticism of Past Schemes
Critics of the previous scrappage schemes argue that they merely flooded the market with cheaper cars.
Mr Forrester dismissed these claims, pointing out the importance of the 600,000 UK workers relying on the car retail industry. He stressed the taxes paid by these workers and on sales, which contribute significantly to the economy.
The motor trade and its workers remain a crucial part of the UK’s economic fabric, making this industry worthy of government support.
Extending Beyond the Automotive Sector
Make UK, the body for manufacturing employers, suggested that scrappage schemes should also cover old IT, plant, and machinery equipment. Such a move would encourage businesses to invest in new technologies.
Stephen Phipson, the CEO of Make UK, stated, “As we come out the other side [of the pandemic], we need to look to them for innovative schemes which can help businesses recover quickly.”
Environmental Considerations
Phipson also pointed out that these initiatives could address significant environmental challenges.
By retiring outdated technology and vehicles, the schemes could help reduce both pollution and waste.
This multi-faceted approach would ensure that economic recovery goes hand in hand with environmental responsibility.
The Role of Motor Trade Insurance
Motor trade insurance remains essential for businesses during these transformative times, ensuring they stay protected.
With the automotive sector undergoing significant changes, insurance provides a safety net for businesses to navigate these new challenges.
The Broader Impact
Introducing new scrappage schemes could provide the much-needed boost to various sectors. The schemes aim to encourage the uptake of new, efficient technologies and support economic recovery across the board.
The call for new scrappage schemes by the motor trade highlights the need for government support across various industries. Such measures could rejuvenate the economy, support employment, and address environmental issues.
The proposed changes aim to ensure no sector is left behind, fostering growth and sustainability. These schemes represent a forward-thinking approach to economic and environmental challenges.