Lord Mandelson has revealed that the government so far has no intention to extend the scrappage scheme.

Speaking on a BBC radio interview, he said it was unlikely to continue past its intended deadline, despite calls from various motoring organisations.

"At the moment we have no plans for extending or renewing it," the business secretary revealed.

The Society of Motor Manufacturers and Traders revealed earlier in the summer that the car buying market remains down 25.9 per cent or 322,524 units over the first half of the year.

NFDA chairman Paul Williams said: "We are bitterly disappointed at Lord Mandelson’s recent comments where he rejected the possibility of continuing the vehicle scrappage scheme without even the courtesy of a meeting with the industry to discuss the issue.

 

"The NFDA is still waiting for confirmation of a meeting with Government to discuss an extension of the scheme," he added.
 

Hugh Bladon, spokesperson for the Association of British Drivers, expressed concern that used cars which are still fit to be driven would end up being scrapped.

"That in itself is a bit of a shame," he expressed, adding that they should still be kept on the country's roads rather than "turning them into junk".