Skip to main content

Motor Vehicles: Manufacturing Industries

Volume 504: debated on Monday 18 January 2010

To ask the Minister of State, Department for Business, Innovation and Skills how many requests from businesses for help from the Automotive Assistance Programme have been (a) received and (b) approved. (311121)

The Automotive Assistance Programme (AAP) Team has had contact with over 90 companies and continues to seek and receive new applications. Two formal offers of support have been made which were not taken up due to success in accessing financial support elsewhere. Five further companies who received positive indicative support also saw this prompting external investment. 11 other companies remain in detailed negotiations with BIS over applications worth some £2 billion.

To ask the Minister of State, Department for Business, Innovation and Skills what assessment he has made of the effect on the economy of the car scrappage scheme. (311364)

A BIS assessment of the UK scrappage scheme has estimated a short-term stimulus to the value of UK vehicles sales worth approximately £2.1 billion. On 28 September 2009 the Government announced an extension to the scheme. The revised cumulative figure is currently expected to be approximately £2.8 billion by the time the scheme comes to an end.