'No more cash handouts for car industry'

CAR companies were dealt a blow yesterday when they were warned they can expect no government hand-outs.

Business Secretary Vince Cable said government help would be provided by giving the automotive industry "a stable business environment".

He said this would be done by "creating a more supportive tax environment, freeing up credit through the banking system, reducing regulation and focusing on training".

He was speaking ahead of an address to the Society of Motor Manufacturers and Traders.

Earlier this week Mr Cable said car manufacturers could no longer depend on direct government financial support: "We don't want to go around the country waving a cheque book."

He added: "The car industry has endured tough times in the last few years but we are now seeing reasons for cautious optimism.

"We want to give the automotive industry a stable business environment to capitalise on further opportunities."