Dated: 29 June 2010

Con-Dem Government Cutting Support to Car Industry

 

Just days after it was reported that Michelin were going to receive funding promised to them by the previous UK government, there has come a daunting word of warning from Vince Cable, the business secretary for the new Liberal-Conservative coalition government.

According to an interview printed in the Financial Times, Vince Cable has stated that further public financial support for the UK car industry is going to be pretty unlikely for the foreseeable future. On top of this, he has made it clear that the plans put in place by the previous Labour government to help subsidise early purchases of low-emission vehicles for 2011 could be scrapped. Vince Cable was quoted in the Financial Times as saying, “We don’t want to go around the country waving a cheque book.”
 
Vince Cable went on to make comments that seemed to reflect on the general planned reduction in the government’s plans to spend public money. “We’re moving away out of an emergency time, and support will come in more indirect ways,” Cable then went on to remark that many of the planned projects within the motor industry – such as new production plants - should “not depend on government support.”

The piece in the Financial Times went on to conclude that although Vince Cable was “not closing the door to conversations” on companies that wised to approach government for help, direct aid is quite unlikely and previously promised publically funded assistance of low-carbon vehicle projects remains in a state of uncertainty.

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