Charity: 'Let scrappage scheme end'

A fundraising group which collects unwanted cars for charity has lamented the extension of the Government scrappage scheme.

Giveacar, which has raised about £1,000 by scrapping 16 cars since November, said the "cash for bangers" initiative discouraged people from giving away their old vehicles.

Tom Chance, director of the London-based group, said he has been longing for the scheme to end since its launch last year.

Under the arrangement, drivers of certain cars get a £2,000 grant towards the cost of a new one, with half provided by the Government and half by manufacturers.

Although it was due to end this month, dealers and manufacturers now have until the end of March, or until the fund runs out, to boost new car sales.

Mr Chance said: "When the scrappage scheme ends we can look forward to higher demand, lower competition and greater power when it comes to negotiating with our associated scrap facilities."

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