Do We Need A New Scrappage Scheme?
Friday, 11. December 2015
We seem to be having a week of environmental issues! MP’s have prepared a new clean air report for consideration by the Government. In it they recommend that a new scrappage scheme be introduced for diesels and vehicle excise duty (car tax) should be based on nitrogen oxides as well as CO2 and not just CO2 as it is at the moment.
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The report was presented to the Chancellor before his Autumn Statement by the Environmental Audit Committee in a hope that he would take note and encourage people out of ‘polluting diesels’. The chairman of the committee, Huw Irranca-Davies, urged the Chancellor to strike a better balance, he went on to say ‘A National scrappage scheme could provide a shortcut to cleaning up the air in our cities.’
Whilst the Chancellor only retained the 3% benefit in kind loading on diesels in the Autumn Statement that’s not to say that more won’t be done in next year’s budget. My own view is that whilst we should focus on the environment we should stop all this knee jerk reaction, the like of which we’ve seen following the VW debacle.
They did it with pay day lenders which has ended up taking out competition and increasing the use of illegal money lenders and by extending the rules into the whole of the consumer finance industry, to an unnecessary degree, they could end up pushing us back into recession.
Things may look good for the Chancellor at the moment but will it still look quite so rosy in a year’s time when ‘affordability tests’ become the focus of attention by the PPI lawyers? By Graham Hill
