A fleet consultant has suggested the Government should have used the £300 million set aside for the scrappage scheme to renew its own fleet.

Stewart Whyte, managing director of Fleet Audits, said the money would be better off being invested by the Government in refreshing its own vehicle fleet.

 “I do not think the scrappage scheme is the best use of £300m of public money, particularly because there is no encouragement within the scheme for consumers to buy low-emission vehicles," he said.

“The money could have been used to buy some 45,000-60,000 new low-emission cars and vans to refresh and rejuvenate some elements of the fleets in Government departments and agencies.

“Our fleet experience suggests that the majority of such bodies have for many years been restricted in vehicle replacement opportunities through budget caps."

Mr Whyte has also questioned the ability of owners of vehicles that qualify for scrapping under the scheme to be able to fund a new car or van even with a £2,000 incentive under the programme.

Mr Whyte is also concerned that the polarisation between old, low-value cars and new ones is more likely to harm than stimulate the whole of the used-car market.

“If the scheme permitted some younger, clean, low-CO2 used cars to qualify, positive effects would ripple would ripple through the whole market, including more fleets re-starting their fleet replacement programmes with new cars.” he said.

“This would have a more powerful impact than the scheme proposed."