Car scrappage allowance could become a goldmine
It has been revealed that only days after the UK government announced an allowance programme for those scrapping older cars there are a significant number of loopholes in the proposals. Apparently, cars which are no longer roadworthy and effectively "off road" can still be traded in with the owners receiving upwards of £1000 for the vehicle.
There are concerns that the allowance being made available to car owners, which need to be matched by car retailers in the UK, could well be used to acquire sports cars, 4x4 or luxury saloon cars. They were a staggering 4.3 million cars registered off-road in the UK over the last 12 months and while at some stage they would have been scrapped they have become something of a goldmine for their owners.
Even at this early stage it is highly concerning that loopholes have materialised and the system could be open to abuse from day one. Aside from the fact that sales of more fuel-efficient vehicles have soared over the last 12 months, negating the need for a scrappage allowance, the cost to the UK taxpayer will be significant. It would appear there needs to be significant changes made to the structure of the allowance proposal in the short term otherwise this could become a very expensive white elephant.
Share this..
Related stories
Have you reviewed your financial situation since the turn of the year?
While there have been signs that the UK economy may be stabilising in the short term, many people are still burying their head in the sand with regards to their own financial affairs and hoping everything will "come right" in the end. However, even if the UK economy was to recover in the short to medium term there will still be a significant lag in the employment market with unemployment set to ri...
Read MoreNow the banks are to blame for global warming!
While worldwide banks are not to blame for global warming, you could be mistaken for thinking so with Gordon Brown and Nicolas Sarkozy suggesting that a worldwide banking tax should be used to fund the climate change investment (something which has been promised for years by the EU). The proposal that worldwide banks put billions upon billions of pounds into saving the planet is one of the more bi...
Read MoreKensington Mortgages hit by FSA fine
Kensington Mortgages, one of the U.K.'s leading sub-prime mortgage lenders, has today been hit with a fine of just over £1.2 million by the Financial Services Authority (FSA). This goes back to an earlier FSA investigation into the company's handling of customers in arrears and the ruling that three different types of fees charged against those in arrears were unfair or excessive. The company has...
Read MoreAre our MPs being treated differently from taxpayers?
As news emerges that 27 MPs are under investigation by the tax authorities, with one MP potentially under investigation by the police, there are concerns that UK MPs are being treated differently from everyday taxpayers. A number of cases of alleged fraudulent activity have already been clarified and the very fact that Parliament has asked a number of MPs to repay significant amounts of money is a...
Read MoreTesco: Save £100 on a joint car insurance policy
Taking out a joint car insurance policy when you move in with your significant other saves money, Tesco reminded customers today.A study from the car insurance provider has revealed that around two-thirds of policyholders fail to tell their insurer when they begin cohabiting.Tesco also revealed that 48 per cent of couples only notify their provider when they come to renew their policies - and 17 p...
Read More