Business Secretary Lord Mandelson is being called upon to extend the car scrappage scheme. The scheme has been heralded as a saviour of the stricken motor industry, with a surge in new car sales reported. However, the scrapping scheme is limited to 300,000 vehicles, and with 150,000 already scrapped concerns are high about how long the scheme will last.

Taxpayers are funding half of the scheme, which costs some 600 million pounds. The motor industry are paying for the rest. Environmentalists are in favour of the scheme, as it replaces older, less fuel-efficient vehicles with smaller, newer cars that use less fuel.

The SMMT (Society of Motor Manufacturers and Traders) reportedly commented: The scrappage scheme has worked effectively since its launch in May. It has given a boost to consumer confidence and has got people back into the showroom. While the automotive industry continues on the long road to recovery, SMMT urges Government to take action. Ministers need to sustain economic recovery through easing finance and credit .