Budget 2009- car scrappage scheme

The Retail Motor Industry Federation (RMIF) has called for the vehicle scrappage scheme, business rate relief on empty buildings and the continuation of the VAT cut in Wednesday's Budget.

The RMIF, which represents 8,000 motor sector businesses which sell, service and repair new and used vehicles, says the vehicle scrappage scheme could boost new car sales.

Chairman Paul Williams said: "The adoption of a car scrappage scheme would give a boost to the new car market, and enable consumers to trade in their old cars for new, less polluting vehicles.

"Consumers will look to new cars again, given the right impetus, and the RMIF has lobbied for the introduction of a scrappage scheme to revive car sales, and remove high-polluting cars from the road at the same time.

"This scheme is widely supported by car retailers."

The RMIF has also said the current rate relief for empty buildings up to a value of £15,000 is "unrealistically low" and that planned changes to increase VAT in January could "kill off any chance of recovery" if implemented too soon.