Government failing to support car industry

The Government's flagship car industry rescue package has not helped a single firm in the four months since it was launched, Ministers have admitted.

Business Secretary Lord Mandelson launched the Automotive Assistance Programme in January, claiming it would provide £2.3bn of emergency funding to help save car industry jobs in the wake of plummeting sales.

But four months later, Ministers admit that not a penny from the scheme has reached struggling firms. The news comes as new figures show car sales fell a further 25% in May.

Mark Prisk, the Shadow Business Minister, said, “Ministers are all talk and no action. When, for example, are they going decide on action for Jaguar Land Rover? France has acted to help Renault. Germany has acted to help VW. When is this Labour Government actually going to act to help British workers?”