He said: 'We have consistently argued that the fuel escalator could be used to abolish VED for all cars up to 1.6 litres - two thirds of cars - and so encourage people to buy smaller, more fuel-efficient vehicles. It means people are getting something back in return for the increases they are paying. Although Labour has suggested it will consider a small cut in vehicle excise duty to just £100 for some more environmental vehicles, it is not clear which vehicles will be covered.'
According to the Government's own figures it is the bigger-engined diesels which are more environmentally friendly, with better efficiency and less CO2 emissions. The Department of the Environment, Transport and Regions' figures reveal that the direct-injection turbodiesel cars from Audi, SEAT and Volkswagen are all more fuel-efficient and have less carbon emissions than the far smaller petrol-engined Fiat Cinquecento, Citroen Saxo and Renault Clio.