BANGER BOOST; your money.

Byline: GRAHAM HISCOTT

THE Government's banger bonus scheme has delivered a welcome boost to UK car plants.

Figures out yesterday showed almost 18% fewer cars rolled off production lines last month com-pareto July 2008.

But that was the smallest decline this year and, as we reported previously, sales of new cars were up 2.4% in July, the first rise in 15 months.

Since the launch in May of the scrappage scheme, where owners of cars at least 10 years old get pounds 2,000 off a new one, 166,000 orders have been placed.

UK car plants produced 107,635 vehicles in July, up 17% on June, according to the Society of Motor Manufacturers and Traders. Threequarters were exported, most to Europe where similar scrappage schemes have seen sales soar.

SMMT boss Paul Everitt said: "The UK motor industry is starting to stabilise but remains fragile."

One fear is that orders will fizzle out when the scrappage scheme ends.

The Government's target of 300,000 vehicles could be met as early as October.

Many in the motor trade want to extend the scheme, arguing the pounds 1,000 that taxpayers put in is more than made up by the VAT on new cars. The industry puts in the other pounds 1,000.

CAR dealer Arnold Clark is 700 staff by next year, 500 sales jobs 120 apprenticeships, mainly for its sites in the north of England.