Car scrappage success

The Labour Government's car scrappage scheme is having a real impact on helping our hard-pressed motor industry.

Although new car registrations continued to fall in June compared to June 2008, the rate of decline was much lower than it was in May. Over 176,000 cars were sold last month.

The government's scrappage scheme provides grants of up to £2,000 to trade in a car that's over 10 years old, which can be used towards a new car. The scheme not only helps the car industry - it also helps the environment because older cars are far less energy efficient and far more polluting.

Around 30,000 cars have been traded-in using the scheme so far. The most popular new cars being bought are Hyundai and Toyota.

The success of the Labour car scrappage scheme comes after ongoing evidence that the government's VAT cut - which was fiercely opposed by the Conservatives - has helped our retail sector. The Conservatives continue to claim that Government should not be intervening to mitigate the recession - despite all the evidence that measures like the scrappage scheme and the VAT rate cut work.

I'm certain that as the year rolls on and the worst of the recession is put behind us, it will become apparent to all just how wrong the Conservatives have been when it comes to tackling the recession. Not only are we now seeing evidence that Labour's intervention is working, but we have the evidence of the two Tory recessions of the 1980s and 1990s. As we know, during both recessions the Conservatives refused to step in and help those affected and families and communities up and down the country were devastated as a result.

The Conservatives need to admit they've made a massive mistake: spending now means a quicker return to stability and growth. That's what everyone, no matter who we support, wants. But only Labour has got right how to achieve that.