Business secretary Lord Mandelson has upset the National Franchised Dealer Association after refusing to consider extending the controversial scrappage scheme that has seen a massive increase in private new car sales while fleet continues to struggle.

“We are bitterly disappointed at Lord Mandelson’s recent comments where he rejected the possibility of continuing the vehicle scrappage scheme without even the courtesy of a meeting with the industry to discuss the issue,” said NFDA chairman Paul Williams.

The scheme was launched earlier this year with £300m of Government funding, and will run until either the money runs out or until March 2010.