The decline of car production in the UK slowed sharply last month, helped by the government’s cash-for-bangers scheme.

Car production fell 17.9 per cent to 107,635 vehicles in July compared with a year ago, the Society of Motor Manufacturers and Traders said on Friday, the smallest monthly fall in 10 months. Year-to-date output was 45.8 per cent lower at 518,375, according to the SMMT, which compiles the figures.