... and diesel drivers face tax hikes in ‘new clean air plan’

MINISTERS are considering tax hikes on diesels, it emerged last night.

In a statement buried in the Budget documents, the Government confirmed it was looking at the ‘appropriate tax treatment’ for cars that use the fuel.

It said it would ‘engage with stakeholders’ ahead of making any changes in the autumn budget. The Government said it was looking at options alongside plans to improve air quality but refused to give more details.

Last night motoring campaigners raised fears that measures could include an increase in car tax or fuel duty for diesel drivers.

A new clean air plan is expected to be published in the spring as the Government strives to meet EU emissions targets.

Ministers are particularly concerned about diesel cars which emit less of the greenhouse gas carbon dioxide than petrol engines, but produce more dangerous nitrogen oxides which can cause respiratory diseases.

Last month transport secretary Chris Grayling said motorists should think carefully before buying a diesel and look at hybrid or electric cars instead.

Ministers are said to be reluctant, however, to raise taxes on diesel drivers because it will penalise many on low incomes and prove deeply unpopular with voters.

They are said to be more receptive to the idea of a scrappage scheme encouraging drivers to swap their cars for lower emission vehicles.

There are currently around 11million diesel cars on the roads and the same fuel duty – 57.95p per litre – is also applied for petrol.

Car tax, or Vehicle Excise Duty, is based on carbon emissions and can actually favour diesel engines, which tend to be more fuel efficient and emit less CO2. Motoring campaigners complain that millions of diesel drivers were encouraged to buy them by the previous Labour government because ministers and scientists said they were better for the environment.

Howard Cox, founder of FairFuelUK said: ‘11million diesel owners with no affordable choice cannot be punished by a taxation scheme that will not reduce usage or pollution. And in no way should more fuel duty be added to diesel at the pumps.

‘The UK already pays the highest levy in the world. Carrot not stick please.’

Figures published on Monday showed sales of new diesel cars fell almost 10 per cent in the year to February as motorists appear to be heeding health warnings.

The British Lung Foundation last night expressed disappointment that the Chancellor had not announced an immediate tax hike on diesel drivers along with a scrappage scheme.