Government urged to follow BVRLA and FLA principles for successful scrappage scheme

Following news of a possible £6,000 scrappage scheme to promote new car sales and transition buyers into cleaner vehicles, the BVRLA and FLA have outlined the key principles to the Government that should underpin a successful scheme.

The two trade associations are urging Ministers to develop an ambitious car scrappage scheme, but have outlined principles that will make it successful in tackling air quality, driving EV uptake and encouraging more sustainable travel behaviour.

The letter, sent to HM Treasury, the Department for Transport and BEIS, highlights the importance of the automotive sector and its potential to play a major role in recovering the economy, while simultaneously being used to progress environmental issues.

The two association’s ten principles for a green car scrappage scheme ask the Government to:

1. Act quickly
2. Be bold
3. Prioritise NEW and USED EVs
4. Don’t forget about air quality
5. Support fleet and private buyers
6. Make a difference where it matters
7. Drive transport behaviour change
8. Be purchase-channel agnostic
9. Work with all financing models
10. Think long-term

BVRLA chief executive Gerry Keaney said: “[Fleet’s] enormous purchasing power can and must be harnessed to deliver a swift rebound in the economy and a faster trajectory towards transport decarbonisation.”

Keaney also responded regarding the £6,000 scrappage scheme that it must promote both new and used vehicles to be effective.

Adrian Dally, head of motor finance at the FLA, said: “Getting Britain moving again will require many businesses and consumers driving newer and cleaner vehicles at prices they can afford. This stimulus will come at the right time to support jobs and households across the whole of the UK.”

BVRLA members represent the demand side of the automotive sector, owning and operating over five million cars, vans and trucks, including more than 90,000 battery electric vehicles. Its members buy around 50% of new vehicles sold annually and spend more than £30bn upgrading their fleets each year. FLA members provided £48bn of new finance to help households and businesses purchase cars in 2019 and are responsible for 91% of all private new car registrations.