Car sales saw their biggest rise in 20 years with the motor industry recording a 31.6 per cent increase last month.

A combination of the Government's "cash for bangers" scrappage scheme and a rush to beat next year's 2.5 per cent VAT increase combined to give car makers another buoyant month.

According to the Society of Motor Manufacturers and Traders the scrappage scheme – in which anyone trading a 10 year old car gets a £2,000 subsidy towards a new model – accounted for a fifth of sales in October.

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