Car Forums and the Car Scrappage Scheme

Car Forums are buzzing with the UK government’s car scrappage scheme which will cost them £300 million. Is it a waste of time and money? Well, seemingly it has helped boost the new car sales by 20%, and this has led to a huge increase in VAT receipts to the government from the sector. Estimates suggest that the government will receive around £405 million in VAT which means a net benefit of a little over £100 million. So, a win-win situation, as buyers take advantage of cheaper new cars, car manufacturers sell more cars, and the government gets more tax out of it all.