Sir Peter Viggers, the veteran Tory MP, was quoted yesterday saying: “As only one in seven cars are made in the UK, the government is effectively spending £7,000 for each new UK car sale.”
The Treasury select committee was also told – by government officials – that the scheme would fund the purchase of 300,000 new cars. But two-thirds of these purchases would have taken place anyway.
To my mind that looks like a subsidy equal to £21,000 per UK-built new car. Was there no cheaper way of helping the ailing motor manufacturers?