The scrappage incentive scheme announced in Chancellor Alistair Darling's Budget last month will come into action on Monday.

It offers owners of cars and small vans over 10-years-old £2,000 off the price of a new vehicle when scrapping their existing model.

The scheme has been welcomed by the motor industry, which has been calling for government support to boost consumer confidence and kick-start demand after 11 months of falling registrations.

Vehicle manufacturers have already reported increased sales enquiries as potential buyers look to take advantage of the scheme, so is this the boost the UK motor industry needs?

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: "The scrappage scheme is good news for consumers and the UK motor industry alike. It has already started to get people back into showrooms to kick-start demand in the market.

"There has been a good response to the scheme ahead of the official start date and industry is confident this will be translated into additional orders."

The scrappage incentive scheme is optional for both manufacturers and car buyers - but for those brands taking part, the discount will apply to their entire vehicle range.

All major vehicle manufacturers have indicated to the SMMT that they have signed up to the scheme and will be offering at least £2,000 off the list price of their vehicles to customers scrapping their current model.