New cars for old scheme

THE Government is set to press ahead with incentives for motorists to trade in old cars for new ones, it emerged today.

The scheme could involve handing out £2,000 vouchers towards replacing vehicles that are more than nine years old.

Reports indicated Chancellor Alistair Darling was “well disposed” toward the idea - despite suggestions that he was at loggerheads with Lord Mandelson.

The Business Secretary is understood to want the measure included in the Budget on April 22 to help revive the struggling UK motor industry.

It is based on a similar scheme in Germany that has been hailed as a success.

Manufacturers claim that in this country it could generate demand for up to 250,000 new cars.