UK trade gap widens in September

The UK's car scrappage scheme has helped foreign carmakers

The UK trade deficit widened more than expected in September, led by a jump in car imports as Britain's scrappage scheme helped foreign carmakers.

The difference between what the UK exports and what it imports was £7.2bn in September, well above analyst expectations of a £6.1bn deficit.

Imports of overseas-made cars jumped by 30% during the month, said the Office for National Statistics.

The scrappage scheme gives owners of older cars £2,000 towards a new model.

'Significant'

September's overall trade deficit was the biggest since January.

"The increase in exports - which is a significant increase - is good news for the UK economy," said Trade Minister Lord Davies.

"We are a trading nation and this reflects a return to growth for the global economy. The competitive value of the pound makes the UK well-placed to benefit from increased global demand."

UK Trade & Investment, the Government body headed by Lord Davies, said it helped 30% more UK firms export other goods to other nations in the last financial year.