It is encouraging that the government鈥檚 拢300m scrappage scheme has boosted the UK鈥檚 car industry, with new registrations up 6% this year

But having spurned building industry calls to encourage consumer spending on home repairs and improvements by cutting VAT, why does the car industry warrant such privileged Treasury treatment?

Is it the sector鈥檚 contribution to the economy? Car manufacturing鈥檚 total added value to the UK economy is estimated at 拢10bn. Construction contributes 拢10bn annually to Scotland鈥檚 economy alone.

Is it the environmental benefits? True, consumers have traded in their old bangers for greener new models. But home improvement incentives would also have major environmental benefits.

While evidence is increasing that the blanket 2.5% VAT cut has failed, 鈥渃ash for bangers鈥� proves that properly targeted consumer incentive schemes work. Car manufacturing will remain a virility symbol for governments worldwide. But this government must recognise that construction is also vital to future economic success.

Michael Levack, chief executive, Scottish 黑洞社区 Federation

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