UK car sales declined by 25% in May compared with the same month last year, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

This is the 13th consecutive month that the sales of new cars have decreased, but the figures do not take into account the impact of the car scrappage scheme, which was implemented on the 18th of May.

Under the scheme £2,000 is paid to motorists who scrap cars registered before 31 August 1999 to buy a new car, with the money provided equally by the government and the car industry.

"We have seen an encouraging start to the scrappage incentive scheme with 35,000 orders being placed since it was announced, although it will take time to feed into registration figures," said Paul Everitt, chief executive of the SMMT.