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UK government car subsidy hits early snag

The UK government's surprise announcement of a £5000 subsidy for car owners scrapping cars aged nine years or above has hit something of a snag after just 24 hours. While there were indications that a £2000 subsidy would be made available, the UK government appeared to increase this to £5000 in the hope of increasing interest in "electric cars".

The announcement is now shrouded in mystery as even the DTI has acknowledge that the first electric car which will be eligible for the £5000 subsidy is at least two years away from mass production. Yet again, after priming the UK press for a significant announcement which would in due course assist the UK car industry, the UK government has opened itself to accusations of using "smoke and mirrors". By the time the £5000 subsidy is of any use we could see the vast majority of UK car manufacturers out of business.

There is some debate as to which other vehicles may be eligible in the short to medium term but at this moment in time the scheme appears to be nothing more than a public relations gimmick. Given the fact that the authorities had a perfect opportunity to assist the UK car industry this is very disappointing to say the least.

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