Representatives of the automotive industry have met government representatives to discuss the potential implementation of a car scrappage scheme, which could benefit motor traders with business insurance.
Angela Eagle, exchequer secretary, met with the Retail Motor Industry Federation's (RMIF's) Paul Williams and Sue Robinson, who are its chairman and director respectively.
The topics covered in the meeting included the government's recent proposals to stimulate demand for new and nearly-new vehicles.
Mr Williams claims implementation of a scrappage policy for nine-year-old cars could lead to an additional 250,000 vehicles being introduced to the roads.
It would also lead to an equal number of these being removed from circulation, improving the UK's emissions performance and encouraging car insurance holders to make new purchases.
Ms Eagle has assured the RMIF that the Treasury and the Department for Business, Enterprise and Regulatory Reform will carefully examine the proposals.
Earlier this month, the organisation called on members with business insurance to sign up to the Motor Industry Code of Practice for Service and Repair.
