Honda and Ford delay joining car scrappage scheme

Ford and Honda have delayed their involvement in the government's car scrappage scheme due to concerns over the VAT arrangements.

The two manufacturers are waiting for clarification from the government on certain details about how the scheme will be implemented before they agree to join.

The scrappage scheme, announced last month in the Budget, offers a discount of £2000 - paid equally by the manufacturer and the government - on new cars when a car of more than 10 years old is exchanged.

Both manufacturers have stated that they are still committed to the scrappage scheme and expect the problems to be resolved before the end of the week.