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LONDON, March 5 (Reuters) - New car sales in Britain fell by more than a fifth year-on-year in February, industry figures showed on Thursday, prompting renewed calls for government incentives for car buyers to help combat recession.
The Society of Motor Traders and Manufacturers said new car sales were 21.9 percent lower last month than a year ago, at 54,359.
The fate of the car industry has become a hot political issue as governments around the world take measures to help the sector weather a slump in demand.
Britain has pledged to guarantee up to 2.3 billion pounds of loans to the industry in a bid to safeguard thousands of jobs .
"New car registrations continue to decline and although the government recognises the strategic importance of the UK motor industry, urgent action is still needed," said Paul Everitt, SMMT chief executive.
"It is imperative that UK government increases the pace in responding to industry proposals for a scrappage scheme and access to finance and credit."
Britain's business secretary Peter Mandelson said last month he was studying the idea of car scrapping schemes introduced in other European countries to boost demand for new models.
German car dealers have reported an upturn in business after the government offered financial incentives for all new car buyers who scrap vehicles at least nine years old.
(Reporting by Christina Fincher and Avril Ormsby; Editing by Ruth Pitchford)