London, England – Britain has launched a vehicle scrappage program, which will provide consumers a discount of £2,000 on a new vehicle if they scrap an old one.

Vehicles eligible for the program must be more than 10 years old, and must have been owned by the consumer for more than 12 months. The government said that the scrappage program will be in place “for a temporary period.”

The scrappage program was part of a new budget, which also increased the duty on fuel by two pence per litre, starting September 1, 2009, and by one pence per litre in real terms each year from 2010 to 2013.

The new measures follow a previously-announced incentive of between £2,000 and £5,000 to help consumers buy an electric car. The funding, which will start in 2011,  is part of the government’s strategy to reduce CO2 emissions in the U.K.  To be eligible for the rebate, vehicles would need to meet modern safety standards, and have a large enough range and top speed to make them popular. The government also announced it will provide £20 million for charging points and related infrastructure to help develop a network of “electric car cities” throughout the U.K.

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