Companies running older vans should benefit from the Government’s move to put another £100m into the vehicle scrappage scheme, which should allow another 100,000 new vehicles to be bought using the incentive.

Outright purchase fleets running older vans, which are no larger than 3.5 tonnnes, were also given an extra incentive when the eligibility age was cut from 10 years to eight years old.

This means vans registered before 28 February 2002 (Y registration or earlier, or new style number plates where the 3rd and 4th digits of the registration number are 51) now qualify.

There is no restriction on the number of vans a fleet can trade-in under the scheme, provided they are old enough and have been registered to the company or operator for the past 12 months.

The age qualification for cars was also changed by six months, so cars registered on or before 29 Feb 2000 (V registration) now qualify.

By the time it ends in February 2010 it is expected that 400,000 vehicles will be bought under the scheme, which uses Government and vehicle manufacturer money to reduce the showroom price of a new vehicle by £2,000.

Business Secretary Lord Mandelson said: “This is not a blank cheque to the auto manufacturers but recognition that there is still a short term challenge to boost demand and confidence in the sector.”

SMMT chief executive Paul Everitt said: “The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates.”

But not everyone was happy with the move. The Environmental Transport Association said the decision was “environmentally short-sighted”.