Car scrappage scheme extended

THE government's car scrappage scheme could be extended for a further month.

Business Secretary Lord Mandelson said last night that the scheme, which had been due to end this month, would now continue to the end of March or until the remaining funds ran out, whichever is sooner.

The scheme, which offered a 2,000 grant to motorists trading in vehicles over ten years old for new models, was introduced last April to revive flagging car sales.

"Against the background of the economic downturn the scrappage scheme has proved a great success," Lord Mandelson said.