Chancellor of the Exchequer Alistair Darling's upcoming April 22 Budget could see a radical new scheme introduced to put a bit of vroom into the stalling motor industry.

Based on a similar schemes already underway on the Continent, owners of older cars, typically those more than 10 years old, would be handed discounts when they upgrade to newer models. In Germany, for instance, buyers of new cars get a £2,100 contribution from the government when they trade-in an older car. The German car dealers' body ZdK claims the payout has helped sell 200,000 cars.