Car purchase cash 'being held up'

Much-needed Government cash to help people buy cars on credit is getting stuck in the pipeline, according to business secretary Lord Mandelson.

He told the BBC: "I wish our discussions with the Treasury and the Bank of England - and it is the Bank of England that is in pole position on this - had gone quicker than they have.

"The discussions are nonetheless making progress, and I hope that it will be possible to help those car financing arms because that goes hand in hand with our other efforts to boost this market and give a shot in the arm for the demand for cars."

He said that slow progress is being made on a deal to provide people with credit to buy vehicles, part of a support package including £1.3 billion of European loans and a £1 billion government guarantee.

Asked whether the Treasury and the Bank of England were holding things up, he said: "I wouldn't put it in that way, no, because they are our colleagues and they're doing their best to find the right area, but I can assure you this is a very complex area."

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