The government has announced the extension of the car scrappage scheme by injecting an extra £100m into the initiative.

The scheme gives consumers £2,000 off a new car if they trade in a car that is at least ten years old. The money is equally provided by the government and the car manufacturer of the vehicle that is bought.

The scheme has been a success and over 225,000 new cars have been ordered through it since its introduction in May this year.

The initiative was originally scheduled to end by February or when the £300m the government had allocated the scheme runs out.