Ford has pledged to pay for the VAT increase imposed by the government this month.

The government reduced VAT to 15 per cent in 2008 in an attempt to combat the recession, but as of New Year’s Day it has been back at its previous level of 17.5 per cent.

Ford, though, has said it will paying for this increase on all its car ranges until the end of February.

The manufacturer has seen 35,500 customers helped by the government’s scrappage scheme offers of at least £2,000 and hopes that the latest offer will boost new year sales.

Nigel Sharp, Ford Britain managing director, said: "Ford is offering some relief from the cold, tough start to 2010 by delaying the VAT impact on its new car prices to March."

He added that, when coupled with the current scrappage deals, the move would act as an incentive to visit a Ford retailer in the near future.

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