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RMI retracts swappage scheme idea

The Retail Motor Industry Federation (RMI) has retracted its suggestion to the Government to launch a swappage scheme in the UK.

The industry body had been working on a proposal to help boost consumer confidence with Deloitte around a scheme which would incentivise customers that change their car for a more efficient new model.

However, the communication was sent out to the press this morning by mistake.

A spokeswoman for the RMI said: "We were working on the scheme but it is not yet the right time to launch it."

The suggestion was part of the RMI's open letter to Government ahead of the Autumn Statement next week.

Corporation tax

However, the industry body is still looking for the Government to reduce corporation tax rates during the current Parliament for both SMEs and larger corporations.

Robinson said: “We have been encouraged by the reductions already introduced by the Government but would urge further cuts to allow corporation tax to be in line or beneath our European competitors.”

Consumer credit licensing

The RMI has expressed concern that the consumer credit licensing oversight will be moved from the OFT to the FSA/FCA.

Particularly, the cost and complexity implications for small businesses which provide point of sale finance for the purchase of vehicles.

The RMI believes the current OFT regime is “simple and cost effective”.

Robinson said: “FSA authorisation would prove expensive for our members in comparison, as shown when insurance was brought under the FSA in 2005. Evidence from members during the transition to FSA authorisation showed that individual dealers spent at least £10,000 implementing the new regime and that continuing compliancy has cost a similar figure annually. This cost can only be passed on to consumers.

“We have particular concern that if the new regime is too complex and expensive, dealers will withdraw from providing finance, particularly for the sub-prime market leaving many consumers unable to source credit to buy a new vehicle.”

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