Sales of new cars are up nearly a third on this time last year, according to the motor industry.

Nearly 83 thousand new cars were sold in the first three months of this year - up 28 per cent.

Sales of light commercial vehicles are also up by a third.

Industry group SIMI predicts new car sales to exceed 156 thousand this year.

Economist and review author Jim Power says strong sales will make a major contribution to the exchequer: