Motorists could be paid £1,000 to scrap gas guzzlers

By Robert Winnett, Deputy Political Editor
Last Updated: 4:01pm BST 04/08/2008
Motorists may be paid up to £1,000 to scrap older, more polluting vehicles under plans being considered by the Treasury.

Ministers believe that the scheme may be useful in helping reduce global warming by subsidising drivers who switch to greener vehicles.

The Treasury is considering the incentive payments and is studying a similar scheme introduced in France earlier this year
They are studying schemes launched in other countries which either pay motorists cash for scrapping gas guzzlers or offer them generous discounts for more fuel efficient vehicles.Some countries also offer free or subsidised public transport to those surrendering older vehicles, which tend to be far less fuel efficient than newer models.
The Government is currently facing a backlash over plans to sharply increase vehicle excise duty for people owning cars bought between 2001 and 2006.
More than one million people will see their road tax double and offering people money to switch vehicles may help to quell growing anger among motorists.
The Telegraph has been running a campaign called Fair deal for car drivers as the credit crisis and plans for green taxes have seen motorists face huge increases in the cost of motoring.
advertisement
Now the Treasury is studying a scheme introduced in France earlier this year.
Angela Eagle, a Treasury minister said: "It is certainly something that we would not be averse to looking at.
"The French have introduced a scheme. It is quite new at the moment and we are obviously watching it quite carefully."
A Treasury aide added that although no policies were yet "on the table" the scheme was being "looked at closely".
The car scrapping scheme has been backed by a committee of MPs who have studied the impact of the proposed changes to vehicle excise duty.
The Environmental Audit committee criticised the proposed road tax changes but recommended that the Treasury "urgently examines the proposal for a 'car scrappage scheme'".
However, it added: "In any scheme that were implemented, it would be important to ensure that high emission vehicles were genuinely scrapped - with as much of their materials recycled as possible - rather than allowed to stay on the road under different ownership, for instance in another country."
Tony Bosworth of Friends of the Earth said: "We’re delighted that the Committee have urged the Treasury to consider our suggestion of a car scrappage scheme.
"Three times more second hand cars are bought each year than new ones - so upping VED on old polluting vehicles will encourage people to choose greener models, cut fuel bills and lower carbon dioxide emissions.
"Paying people to scrap their old gas-guzzler and replace it with a cleaner car will make this cheaper and easier to do."
In Texas, motorists can receive vouchers worth more than £1,750 towards a hybrid car if abandoning a polluting vehicle.
From next year, Canadians will get £150 or subsidised bicycles or public transport. Similar schemes are also being trialled in Italy and New Zealand.