The Government has given its support to a scheme calling for the motor industry to have a publicly funded and wholly dedicated sector skills council.

Whitehall's decision to rubber-stamp the scheme shows the industry will be treated as a separate body when it comes to funding worth more than £1m a year.

Fred Maguire, president of the Retail Motor Industry Federation, says: “This is not a green light - but it is certainly a move to amber.

“It means the Government recognises we are an industry in our own right and of sufficient size to merit our own national council and budget.”

The original plan saw the industry lumped under a general transport sector as the 62 national training organisations are cut back to 25 sector skills councils.