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The Independent Automotive Aftermarket Federation

IAAF receives confirmation vehicle scrappage scheme will not go ahead

Date: Friday 14 August 2020

IAAF has received confirmation from BEIS (Department for Business, Energy & Industrial Strategy) that the government has no plans to introduce a vehicle scrappage scheme.

Since the idea of a vehicle scrappage scheme was muted, the IAAF argued that it would have a significantly negative effect on public mobility and the automotive aftermarket long term, especially as many of the vehicles eligible for the scheme will still be very much roadworthy.

The IAAF’s argument was based on previous experience from 2009, when the scrappage scheme removed 400,000 serviceable vehicles from the aftermarket, with more than 90 percent of vehicles sold under the scheme originating from non-UK factories. In 2020, the situation remained largely the same with more than 80 percent of cars sold in the UK being imported.

As the UK aftermarket also employs approximately 347,000 people as opposed to just 186,000 in vehicle manufacturing, employment in the independent automotive aftermarket would also have been damaged by a scrappage scheme and jeopardised thousands of repair businesses.

Wendy Williamson, IAAF chief executive said:

“This is fantastic news for the independent aftermarket and also demonstrates the power of IAAF lobbying activity. We believe a scrappage scheme would have put an unnecessary burden on the motorist and removed many environmentally friendly vehicles from UK roads.”