Cars were named as one of the major influences in bringing the UK out of recession. The car scrappage scheme was thought to be particularly successful in tempting many motorists to trade in their old vehicles .

The Financial And Leasing Association also showed that spending on car finance soared by 36 per cent last year. Other vehicle finance agreements also soared. The increase was thought to be down to consumers shifting their purchases forward to beat the VAT increase.

Whether the end of the scrappage scheme and the VAT rise heralds an uncertain end to the recession remains to be seen. Colin Ellis of Daiwa Capital Markets was reported as saying: These sectors will have been boosted by the pre-announced VAT rise in January, and the car scrappage scheme – suggesting that, on an underlying basis, the economy only stagnated at best. Never has an end to a recession been so underwhelming.