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The SMMT says the government should increase the savings offered by the Reduced Pollution Certificate (RPC) plus introduce a range of capital allowances in order to boost the CV market. Currently, CV sales are down 71.6% for February, with no end to the decline in sight. The recommendations are contained in the SMMT's submission to the government ahead of the Budget on 22 April.

Robin Dickeson, manager for CVs at the  SMMT, says: "We would like the government to improve access to finance and credit through three things: a scrappage scheme for LCVs; a restructuring of the RPC; and an increase to the capital allowance framework."

Currently, operators that purchase Euro-5-compliant 44-tonners before the 1 October deadline can save up to £500 in annual road tax, however that figure is just £5 for a 7.5-tonne rigid.

The trade organisation is therefore urging the government to increase the discount for smaller trucks to incentivise the purchase of a new vehicle. Furthermore, the annual investment allowance (the amount a business can write off against taxable profits during the period of purchase) stands at £50,000, which several industry sources have labelled "derisory". Should the government heed the SMMT's calls, that figure will increase to £500,000.

Nigel Butler, sales and marketing director at Renault Trucks UK, says: "The scrappage scheme on its own won't work. However, if  the government were to use the RPC, capital allowance, and scrappage plan as part of a package to stimulate the market, then it could have the desired effect, but there has to be a tangible benefit for the operator."

Tony Pain, marketing director at DAF Trucks UK, adds. "The RPC framework could be easily adjusted as it's already in place and, theoretically, would require little effort to increase savings."