Britain to launch scrappage scheme

In his Budget statement to the House of Commons on Wednesday, Chancellor of the Exchequer Alistair Darling confirmed that a scrappage incentive scheme is to be introduced in Britain next month.

The funding will be made up of £300 million from the government - a figure that will be matched by manufacturers participating in the scheme. The scheme will run until the start of March 2010, or until all of the government funding has been used.

A discount will be offered to consumers buying a new vehicle to replace one which they have owned for more than a year. A total of £2,000 will be offered in a 'cash-for-scrap' scheme for 10-year-old, or older, cars: half from the government, and half from the car manufacturer.

Participation in the scrappage scheme by specific car manufacturers is voluntary.