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Government under pressure to extend scrappage scheme

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The UK government is facing pressure to extend the car scrappage scheme after figures showed that it has helped boost new car registrations.

Data from the Society of Motor Manufacturing and Traders, new car registrations increased by 2.4 per cent in July, the first growth in 15 months, which led many people to attribute it to the success of the scrappage scheme.

Recent figures from the the Department for Business, Innovation and Skills showed that the scheme has so far generated total UK sales of 154,927 vehicles.

Commenting on the situation, the Automobile Association said that many other nations have seen their schemes extended due to the positive impact they have on both the economy and the environment by encouraging drivers to buy greener cars.

"The scrappage scheme has clearly borne fruit, but there is concern the money may run out soon," it said.

The UK government has so far committed £300 million to the scheme and it will continue until March 2010 or until the money runs out.

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