LONDON, Nov 5 (Reuters) - New car sales in Britain rose an annual 31.6 percent in October, their fourth consecutive rise, helped by a government incentive scheme, the Society of Motor Manufacturers and Traders said on Thursday.

The industry body said there were 168,942 cars sold last month.

The government introduced a scrappage scheme earlier this year which gives drivers 2,000 pounds to trade in cars more than 10 years old against a more fuel-efficient newer model.

The scheme, co-funded by the car industry, has proved popular and the government agreed last month to boost funding for the venture to include an additional 100,000 vehicles.

'October has seen this year's biggest monthly increase in registrations with the successful scrappage scheme accounting for over 20 percent of them,' said Paul Everitt, SMMT chief executive.

(Reporting by Christina Fincher and Kylie MacLellan) Keywords: BRITAIN AUTOS/SMMT

(uk.economics@reuters.com +44 207 542 7748)

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