No more Government funding for motor industry (UK)

Business secretary Vince Cable has said that car makers can no longer expect financial support to make cars in the UK.

Speaking at a conference in Central London, he said: �I don�t see the future as large scale funding for particular companies. We can�t fight a subsidy war.�

Cable persisted that he saw future Government money going towards assisting the car business as a whole, vowed support for investment in research, technical education, more apprenticeships in the motor industry and appeal to inward investment through lowering corporation tax and creating a more stable economy.

The business secretary also denied that the �5,000 funding for anyone buying an electric car was going to be scrapped, admitting that it was still �actively under consideration�. He also promised support for Britain�s luxury car business arguing, �We�re not trying to turn every car into a Nissan Leaf�. �There�s variety in the motor industry and it needs to be supported,� he said.

While, a car-buying scheme, such as the scrappage scheme is not the way to invigorate the car market, business secretary Vince Cable has said.

'It got us out of a sensitive stage in the economic crisis, but it was too expensive to run. We are emerging from a period of Government intervention. We are now in a different world. The Government can't fight and win a subsidy war.'

Cable said: 'The best way to back the car industry is to create a good business environment. The Government will continue to back industry in a cost effective way.''