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The car industry had been passionately campaigning for the scrappage incentive scheme to be introduced amid a 30pc fall in new car sales in the UK.
Some of Britain’s biggest car manufacturers, including Vauxhall, Jaguar Land Rover and Nissan, have cut jobs, pay and production as the financial crisis drives the industry to its knees.
Similar plans to the one introduced in the Budget have proved highly successful elsewhere in Europe, however, the Chancellor is believed ...