Business Secretary Peter Mandelson was to announce an extension of Britain's car scrappage scheme Monday, media reports said. Mandelson was to make the announcement in a speech at the annual conference of the beleaguered ruling Labour Party, which is battling to come back from dire poll ratings ahead of a general election next year.
The scheme - which gives buyers a 2,000-pound (3,200-dollar, 2,300-euro) discount when they trade in a car over 10 years old - was launched in April and is currently due to end in February next year.
The BBC and Sky News television both reported that Mandelson was due to announce its extension. Sky quoted him as saying he wanted it extended, as did Prime Minister Gordon Brown, but that the finance ministry had resisted. In his own speech to the conference Monday morning, Chancellor Alistair Darling said: "Through the car scrappage scheme we will continue to support jobs in the car and wider manufacturing industries."
Britain has been hoping that the scheme, which is costing 300 million pounds (480 million dollars, 345 million euros), proves as popular as one launched in Germany, where the government has stumped up around five billion euros. Some 38 car manufacturers have signed up to take part in the British scheme, which applies to cars and light commercial vans. The global automaking sector remains in crisis as many consumers steer clear of buying vehicles amid the worst economic downturn since the 1930s.