UK Scrappage Incentive Comes on April 22

Following growing social request for the introduction of a scrappage incentive on the British market, the UK government seems to have taken note and plans on introducing such an incentive, which has proven very successful on other European markets.

According to the Sunday Times, quoted by detnews.com, the UK government plans a 2,000 pound trade-in scheme and goes even further and speculates that the introduction of the program will be announced on April 22.

Still, the British officials have split in two over the idea. Whereas the majority believe that such a measure will bring a breath of fresh air into the country's battered automotive industry, there are a few that believe such a move will do nothing than to postpone the inevitable and put additional stress on the governments reserves.

The disagreement has started between business secretary Peter Mandelson and finance minister Alistair Darling. While the first endorses the idea, Darling has concerns regarding the terms of the program.

"Officials from both departments are continuing to look at the possibilities of such a scheme. However, no decision has yet been taken,” a spokesman for Mandelson's department was quoted as saying by the aforementioned source.

Until a final decision is taken, the industry is left to tend to itself. Having posted a 30.5 percent drop in March, compared to the same month of 2008, the Society of Motor Manufacturers and Traders (SMMT) intensified the lobbying for a scrappage incentive.

SMMT was backed by UK motoring magazine publishers Haymarket Media Group and Dennis Publishing who addressed an open letter to the government and urged readers to sign for a petition to help convince the state officials.