Vauxhall’s new Agila will fall into the £35 road tax band when it arrives in showrooms in April.

The affordable, compact five-door hatchback will emit 120g/km of carbon dioxide from both the entry-level petrol and diesel engines, putting it into VED band B.

The 1.0-litre petrol engine will produce 64bhp, while the 1.3 CDTi diesel unit will put out 74bhp.

A larger 1.2-litre petrol engine with 83bhp completes the new line-up.

The Agila is designed to provide plenty of room inside for both passengers and luggage.

It seats five, all with three-point seatbelts, and prides itself on enough luggage space to rival cars from the class above – 1,050 litres with the rear seats folded flat.

With a tall roofline and high seating position, Vauxhall says the Agila will provide an airy, spacious feel and offer good visibility in heavy city traffic.

Three trim levels will be offered, with prices starting at £7,595.