Chancellor Alistair Darling has announced plans for a vehicle scrappage scheme, following the recent downturn in the sales of new commercial vehicles noted by van insurance companies.
The scrappage scheme will seek van owners who have not bought a new vehicle in 10 years being given £2,000 to help fund the cost of a brand new commercial vehicle.
The move has been welcomed in most quarters, with several quotes confirming this. Peter Mandelson commented that it would benefit "the whole motor trade" by making vehicles relatively cheap compared to prices.
Edmund King, president of the AA, welcomed the policy, saying, "Any incentive will be delivering a short-term boost for the industry. It will bring confidence back into the market."
The van insurance industry have also welcomed the news, with the head of one van insurance company commenting, "It's about time the Government gave the van driving population of the UK a helping hand. Many van drivers are small business owners, crucial in maintaining the backbone of the British economy which needs all the support it can get in these testing times."