UK car sales rose for the first time since April last year, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

Car sales increased by 2.4% in July compared to the same month last year, a rise that has been attributed to the government's car scrappage scheme.

The scheme provides a £2,000 discount when a new car is bought and a car over ten years old is exchanged. The money is provided equally by the government and the car industry.

"The impact of the scrappage scheme is clear and we are encouraged by the impact it has had, increasing new car registrations for the first time since April 2008," said Paul Everitt, the SMMT chief executive.

However, car sales this year are still down 20% on the same period last year, and there are concerns in the industry that sales will drop off again when the full amount of funding for the scrappage scheme expires in late October or early November.