On one hand the government is saying – Use public transport and trying to tax the motorist off the road – now they are give them loads to buy new cars.
Was there a phrase of “Joined Up Government” some time ago or was I dreaming?

David Slater, York, UK

What a great idea, the motor trade affects so many uk workers from the assembly line,component manufacturers, sales,, workshop, breakdown providers to name. Plus of course new cars are more efficient. Bring it on and well done Labour for having the insight.

T Johnson, Oakley, Hampshire

As Margaret Thatcher would say; let the lame dogs go to the wall; tax payers should not prop them up etc.

We all have more than we need; and much more than our parents had in times gone by.

As Norman Tebbit would say; get on your bike; plus its far cheaper than a 4x4.

michael bishop, london, england

Dear Mr Brown, if you could see your way clear to loan me 1 billion pounds, I promise to spend it all for the benefit of the UK and in an effort to save the world. I further promise that I will pay it back as soon as possible. ps. have you heard of the phrase "The lunatics are running the asylum?

Trevor, Southend, UK

I really don't think Brown gets it. In simple terms Brown, people do NOT want to purchase items that will fall in value during a recession - ie Cars and Houses - you might as well burn the money in the street.

Andrew, Wrexham,

This is ludicrous! If Brown is going to spend our money ,lets spend it on a better infrastrucure, more roads, railways, runways. Spend the rest of the money to help small manufacturing businesses . Create some wealth then we will have real money to spend.

Adrian, Hereford, Herefordshire

UK motorists have been heavily taxed under the big "green" con. Showroom taxes, retrospective VED increases, fuel duty and congestion schemes have made car ownership a pain. The industry employs many thousands in factories/garages etc. NuLabour has taxed their jobs into the dole queue, again....

Mike Bird, Somerford,

This seems a little like madness to me, given that a new car loses around 40% of it's original purchase value within two years.
UK taxpayers funding such extravagance whilst unemployment is set to rise and asset values continue to fall makes no sense whatsoever. Govt. perpetuating credit....hmmmmm!

NDG, Tokyo, Japan

Yes, but only for cars that emit very little CO2, anyone who is prepared to invest in a "Gas Guzzler" should stump the money up themselves.

Michael Griffin, Gravesend,

Brown and Company should be sanctioned.
They have lost control and the ship is sinking.
Seems like they are saving the lifeboats for the debt-ridden.
Madness. Madness I tell you.

Rob, London, UK

Succesive governments have, for many years, used taxpayer's money to lend to/subsidise/underwrite British industry and agriculture.

At least the concept of providing funds for car loans suggests an element of repayment.

stuart childs, spilsby, u.k.

Mr Brown has over-encouraged all by his punative tax measures, the follies of owning a car. So what new tax trap has he instore to catch us with after we have bought? Once bitten... ME? I'll wait. Let the wheels fall off my old banger, pick one up in the sales 2 for 1 - after stagnation has kickd in

A Anderson, Liverpool, England

Surely it's time to be spending money on what we can afford? Our car was £600 and is great. It is ludicrous to shore up an industry that needs to learn to pace production according to real people and real money issues, and not against possible future sales figures. So someone can collect a bonus?

Zarich, London, UK

The car industry does not need help with car finance. What we ALL need is confidence in the future that our jobs will be safe. Maybe people will then think about purchasing a new car.
How long do we have to put up with Nulabour driving this once wonderful country, into the ground.

Chris W, Newbury,

Asking us to dump our 4x4’s and gas guzzling cars one week and then subsiding the building of more the following week is about as logical as trying to promote social mobility alongside regional devolution. If this is joined up government then they seem to be joined at the wrong end.

Brian Christley, Abergele, UK

Switch the factories from building cars to buses and trains. Almost everyone agrees we need more and better public transport.

Barry, Wallington, UK

This is disgraceful, I'm an eco-cyclist who eats grass!

Ian P, Sandbach, UK

In the budget they announced another tax on new cars. Now they want to use taxes to allow people to buy new cars. Coherent?

Mike Carter, Bristol,

If Comrade Brown really wants to kick start demand he should try 0% VAT on all vehicles manufactured in the UK.

Simon, Newbury,

Lend more money to people to buy cars! What a ridculous proposition! No one is going to go for that!
How about forcing fixed rate mortgages to be moved onto tracker rates therefore giving people actual money which they can then use to save and buy a car!
They'll be printing money next!

Mike Hinsley, London, England

We are paying for the downturn that was not allowed to happen post 9/11. By loaning your way out of a downturn creates an exponential downturn later. That is where we are now. If you continue to loan, the next downturn will be exponentially even worse than the current one. We need tough medicine.

Michael, London,

So, in an economic crisis caused by too much debt, he is encouraging people to buy rapidly depreciating assets on credit as they don't have sufficient funds to afford it? Genius!How about EVERY public and civil service car has to have been made in the UK? Surely a better solution

Tom, London,

Its not the lack of credit available, people are not interested in spending £10K plus on a new car just at the moment. If you loose your job it doesnt matter where the loans came from you cant pay them back, so people are just holding onto their money. Good sense really. This Government have lost it

tony, Oxford,

Where does this madness end?

Matthew, Benfleet, UK

For the past six or seven years this government has been telling us not to buy cars and to use public transport. Er?

Paul Savage, Lambourn, Berkshire

The Government keep going on about how bad cars are and how we should all start using public transport. Yet they are hypocratically encouraging people to buy new cars. Surely this goes against their "Green" manifesto and is "bad" for the environment.

Adam, WARRINGTON, UK

Oh, my god we are really screwed. I'm off to Zimbabwe.

Kris, London,

Credit crunch or no... Why would anyone in their right mind borrow money to buy a car?

"Can't afford it" is nature's way of telling you to save up until you can and 'car credit' is one of the pieces of madness that got us into this mess!

Pedro, Stratford,

Not sure Labour are dradging the bottom of the barrel yet in terms of fiscal mis-management and Neatherthal economics, but this one is laughable!

The problem is simple - we're bust!

Phil, Liphook, UK

Robbing the poors to pay the rich! This can only come from a new lab gov. Perhaps they will subsidize my family's round the world trip costs next? How about cheap loans for season tickets and rents?
oh how about a year of car tax free for all car owners?

mt, london, uk

Any chance they can tax us less to reduce the cost of ownership and use.
Betcha they won't do that!

Tom Taylor-Duxbury, Ludlow, UK

Markets will be shaped by market forces such as consumer demand. Car finance deals coupled with high depreciation makes new car purchasing a luxury. In a recession luxuries get cut. Im amazed there are still 100k new cars sold. I suppose its company cars.

S Taylor, Bromley, UK

Since we import over 85% of our cars, how exactly will this help UK manufacturing? It's the foreign car buyers who need the loans!

Colin, Shrewsbury,

Well, they totaly stalled the housing market with rumours on stamp duty - guess what this news will do to the new car market while they spend a couple of months sorting the details.

And when/if a strangled scheme does get launched it'll just get the debt ridden even deeper in the mire. Foolish.

Ian Shorts, Watford, UK

What about the beleaguered taxpayer? Not acceptable.

Paul K, Thornton Cleveleys, UK

I dont want a new car. I can't see why taxpayers should support this industry in the manner described. I already pay enough in taxes and am a sufferer from low interest rates for savers, I have no loans, and a victim of the exchange rate. Foreign banks seem more important than me and mine.

Peter Bishop, St Germain d'Elle, France

So the govt. is going to encourage people to spend money they don't have again...um, so absolutely nothing learnt by Gordon et al then. Agree with other comments, pump priming but with economy-benefitting projects would be a better way of stimulating growth.

Andy, London,

This either takes business away from the banks. Surely a bad thing. Or....the business that the banks won't fund gets done through the taxpayer. i.e. The government becomes a sub-prime lender. And all this assumes that scores of people are desperate to buy a car but can't get finance.Hmmm!

Michael, West Midlands,

I don't like being in debt, so why doesn't Gordon Brown just GIVE me a car, while he continues paying the the car workers to produce goods that people can no longer afford to buy..

This is socialism gone mad, otherwise known as Communism.

George, London,

Mr Brown, I am fed up with my old banger. I would like finance for a Bentley and I promise I will pay you back, someday. Pleaseeeee.

anthony, london, england

I need my money for me. Do not give it away to people to buy larger cars than they need. You can get a runabout for £5000: buy one of those, without my subsidy.

C Smith, Norwich, UK

Marvelous.

Time to trot down to my local Bentley showroom.

Chin Chin.

Philip, London, UK

This government seem to be taking an interest (stake) in everything we do and are (and say). Taking control of banks and methods of production was the first step. The farms will be next, just you wait and see.

UKSR, Soviet Britain here we come. Whilst those in charge travel in their 'Zil' lanes.

Andy, Liverpool, UK

Shoring up the car industry by encouraging buyers to take on more debt is a desperate and deranged idea. As was selling Britain's gold reserves for $275 an oz. It's time to call an election. Your time is up, Mr Brown. I'm sorry to inform you that UK plc has no option but to 'let you go'.

Joe, London, UK

How do we get a "Vote of No Confidence" raised against our current government? We need an election NOW to get rid of this lot before they completely destroy the country ... and let's be honest, they're really not far from that now!

Andy, Bath, UK

I hope these car loans are only for UK built cars - there should be NO subsidies for foreign motors.

Arthur, Princes Risborough, UK

Now this may surprise the politicians and bankers but we have an unsustainable balance of payments deficit.

This is the next big issue that will sink this country.

All this is doing is helping foreign manufacturing companies The Japanese, the Germans; the French etc will welcome this move and thank the politicians for sustaining their jobs.

Leo, Birmingham, UK

I concur with with Andy-Alton....
I have two cars,both perfectly usable- but probably worthless in cash value. I don't want to buy a new complicted ,overpriced,tin box on wheels.Please give me some of MY money back Brown, so that I can save it somewhere out of your clutches.

antony graham, southport, england

The government could start by supporting the UK motor industry - whether Honda or Land Rover by buying local. Why do the police operate expensive Volvo's and the like. There should be no reason why they are not mandated to buy from manufacturers here.

T Crowhurst, Budleigh Salterton, England

Brown should get a backbone and allow the banks that made bad investments and businesses that have overstretched themselves to fail instead of burdening the tax-payer. To continue shoring up bad companies and borrowing money in order to do so, merely fall stall the inevitable is lunacy.

Les Corrin, Southport, England

to quote a colleague of mine.
Stop wasting money on credit, start an infrastructure building programme of hospitals, houses and those much talked about high speed rail links. Surely people in jobs is more use to Britain than Government borrowing

graham, Telford,

Credit is not there for a reason. People have overstretched themselves. Mortgages have increased as people have bought cars and other products they don't need.

Credit card debt and negative equity are the ticking timebombs for 2009.

Our nation of spenders needs to learn to save Mr Brown.

Tim, London, UK

All policies to make the victors of the next election look bad as they try to rebuild the shattered finances of this broken country. They know recovery won't be in time for them so are looking at ways of making it last well into the next administration. We have had Nulabour, now begins Hard Labour.

John, Weybridge, England

Today Lord Mandelson stated that he cannot predict the future so where does he think the money is going to come from to pay for all these initiatives? It is beyond the power of government to "save ' the economy, just let individuals get on with it and things will work out in the end.

Clive Stringer, Chulmleigh, Devon

This is getting ever more rediculous every day. We are in a recession; the fiat currency system is falling apart; unless and until we are able to let the failing industries fail and then a new paradigm commence every 'great next step' will simply be Governmental tinkering.

Let the crash happen.

Charles, cambridge, uk

It would seem that the government is fearful of letting unemplyment rise to the levels seen during the last Labour administration. Can we assume that if unemployment hits 3 million they will admit failure and call an election.

Clive Stringer, Chulmleigh, Devon

I was discussing the purchase of a new car last week and there was no suggestion that the dealer was short of credit to offer purchasers. Moreover, my bank manager rang on Monday wanting to know if I wanted to borrow any money. Something isn't quite right!

J Jenkins, York,

and when people who are worried about their jobs decide to do the unthinkable and stick with their current runabout? is the car industries bankruptcy the unpatriotic british consumers fault? if your so desperate to save british industry, how about u cut corporation tax to 0, stop punishing employers

will, grimsby, uk

I'm not buying a new car. Full stop.
Not even with an interest free loan (pre-cycled tax).
Not at half price.
Not even if the Govt bans all cars older than 3 years.

How about we build trains instead, upgrade the tracks, re-open stations, create new routes, etc? Is anyone listening? Hello?

Mary, Birmingham, England

So the public have finally woken up to how indebted they are, and are holding off on pointless purchases of new cars to repay some of that debt. But good ol' Gordon is now going to load up more debt on the govt to compensate.

We'll never hit bottom and start to recover with this lot in charge.

Gonzo, Guildford,

It's not about loans! People are being more careful with money now because they have learnt that loaning money is not the answer anymore. What's next, 'get a loan so you can buy some Whittard's tea' to stop them going bust too?! I look forward to the day when we get a real government!

Rach, Sheffield, UK

The taxation of company cars which, to many, are a vital tools used on a daily basis, has been increased during the current administration by 150+%.
There is more likelyhood that companies will purchase new ones so why not simply reduce the tax burden on beneficiaries?
Not "green" but so what?

A.M.Williams, Stafford,

As the retired CEO of one of the largest car companies I wonder what expertise the government has on car loans.Do they know what they are getting themselves into.
The initial problem is that the dealers will not be able to fund the stock in the first place if they cant get the money to fund stock.

malcolm Hill, Welwyn Garden City, England

A completely mad, illogical, ill-thought-out scheme. Presumably the UK taxpayer will be supporting loans to buy cars manufactured abroad as well as the few models still made in UK. Or maybe an Astra made at Ellesmere Port qualifies, but not a Corsa made in Zaragoza....

DavidK, London, UK

I've already got a perfectly good car. Why would i pay for another for someone i've never met?

David Hall, Stafford, UK

This is getting ridiculous.

Andy, Doncaster,

There seems to be no limit to our Benevolent Leaders largesse.

I hope he has a bailout plan ready for those that can't keep up repayments on their shiny new motor.

Lawrence Frewin, Costa Del Sol, Spain

"Good to see labour committed to equitable wealth redistribution" said the the burger-flipper paying his tax.

dave, london, uk

This stupid government cant make its mind up on whether to support industry or climate.We're taxed high and told to buy greener cars then they tax us further on greener cars and then end up telling us to buy petrol guzzlers with high tax. GIVE US AN ELECTION!!! PLEASE!!!!!

Michael, London,

“I do not believe it would be right for anyone to stand by and see this sort of investment going to the wind,”

Prior investment fallacy - prime example!

John Wood, Hull, GBR

Why don't we just NOT replace our cars and save the cash? I don't have (and don't want) a new car. Can i have my tax back please so I can save it offshore?

Andy, Alton, UK

Rediculous! They should not encourage us to spend money we do not have.

ROBERT, London, UK