The CBI has called on the Government to extend the car scrappage scheme until the general election to help boost economic recovery and employment.
Speaking ahead of the organisation's annual conference, Richard Lambert, director general of the CBI, told the Press Association the success of the so-called 'bangers for cash' scheme had helped support manufacturing jobs across the UK.
"The scheme cannot go on forever, but the Government should think seriously about extending it until the general election," Mr Lambert said.
"It has had a big impact - distributors in particular have had a great few months."
The programme, in which motorists get a £2,000 discount for trading in cars over 10 years old, has been already extended in the last year.
Analysts predict that funding for the initiative will run out early in the New Year.
The one-day CBI conference has "roots to recovery" as its theme.
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