As Alistair Darling reveals his 2009 budget, Vijay Pattni speaks to the motoring world to see what they think.

Its official – the UK government is introducing a £2,000 ‘scrappage’ scheme to help revive the motor industry.

But the Chancellor also announced a 2p increase in fuel duty from September, and a yearly 1p increase over the next four years.

Here’s how car manufacturers, motoring bodies and other industry figures reacted to the news:

Edmund King, AA: “Drivers will be delighted that a scrappage scheme has been given the green light, but motorists will be furious that he has landed a fuel duty bombshell to pay for it.

“The AA first raised the scrappage issue with Downing Street last September so we are pleased that a scheme has finally been given the go ahead.

“White Van Man will also benefit from the cash for clunkers scheme as it will cover vehicles up to 3.5 tons.

“The consumer will welcome ‘Darling’s deals for new wheels’ but will not welcome the way motorists will pay for it at the pumps.”

What do you think about Alistair Darling's 2009 Budget? Leave a comment here

Professor Stephen Glaister, RAC Foundation: “The scrappage scheme announced today risks consigning a lot of perfectly good, and relatively clean, vehicles to the dustbin.

“However if the scrappage scheme leads to a reduction in the average age of the national car fleet then this has to be good for road safety as more modern cars will have a wider range of safety features built-in.

“But the Chancellor’s announcements [on the 2p fuel duty rise] only increase an already grossly disproportionate tax burden on drivers. Year in, year out, those with cars are seen as a soft touch.

“The government knows the majority of journeys on the roads are not made out of choice, but because there is no alternative way of people getting from A to B, yet ministers continue to punish a captive market.”

Paul Everitt, Society of Motor Manufacturers and Traders: “This is good news for consumers and will get people back into showrooms, kick-starting demand in the market. The scheme recognises the economic value of the motor industry and we are determined to make it a success.

“There is clearly a great deal to do and we look forward to discussing the finer detail of the proposal with government in the coming days.”

Paul Williams, Retail Motor Industry Federation: “By opting for a vehicle scrappage scheme in the Budget, the government has taken the opportunity to boost the new car market, while simultaneously helping consumers buy a new car.

“The nation’s car dealer network, which will be in the front line for the duration of the scheme, has the expertise that will enable the scheme to be a success, and will assist government in the implementation of the scheme.”

Ford: “What’s new and needs looking at is the co-funding element. It’s good news for consumers, but its now up to us to analyse what we can afford. It’s not sent us back to the drawing board, but it does mean we’re now part of what’s being proposed, rather than being a bilateral agreement between government and consumer.

“But we support the scrappage scheme. For example, a 10-year-old Ford Focus emits 162g/km of CO2, while a 2009 Focus emits 114g/km of CO2. According to the estimated volumes of new car sales, we calculate the movement of changing old for new under the scrappage scheme will remove 100,000 tonnes of CO2 per year.”

Tony Whitehorn, Hyundai: “[The scrappage scheme] opens up the reality of owning a safer, greener, brand new car for the very first time to millions of Britain's motorists.”

Paul Philpott, Kia: “The devil will be in the detail and I am sure the Society of Motor Manufacturers and Traders will be looking for early meetings with the Treasury to discuss this.

“The reality is that the government is shifting a large part of the cost of this programme onto the shoulders of the manufacturers, when it is the manufacturers who are working hard night and day to deal with the effects of the economic turmoil and recession around the world.”

Mike Brewer, Wheeler Dealers host: “I do support the scrappage scheme in general, but I would have liked to see £2,500 given by government towards any used car with any mileage.”

Tony Wilson, Klarius Group (Catalytic converter manufacturer): “If tomorrow morning in the UK all cars aged three years or more changed their catalytic converters and exhausts for a correctly functioning and approved product, tomorrow afternoon the UK would have reduced its auto emissions output by around 20 per cent.

“I and other responsible manufacturers do not need financial packages to grow our UK businesses and employ more people, but we do need common sense policies and a little more than environmental lip service.”

Tony Woodley, UNITE: “We welcome Alistair Darling's decision to introduce a scrappage scheme but we are urging him to think again on keeping skilled workers in employment. Any scheme to stimulate demand for cars is welcome, but the UK can not afford to lose the workers who build them.”

Matt Thompson, Auto Trader: “We support the government’s scrappage scheme and believe all initiatives to support and stimulate consumer demand in the new car market are positive steps forward.

“But the further increase in fuel duty is not going to help motorists.

“As the UK’s number one automotive marketplace, we are best placed to support the car industry – over 10 million motorists visit our website, and we do business with virtually every dealer in the UK. We are prepared to step forward and do our bit.”

What do you think about Alistair Darling's 2009 Budget? Leave a comment here

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