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In the Pre-Budget Report, in November 2008, Chancellor Alistair Darling said that a wider range of car tax bands reflecting fuel efficiency would still be introduced, but all rates would go up by a maximum of just A?5 in April 2009. The most polluting cars will then only see a maximum rise of A?30 in 2010, however no guarantees of what will happen to car tax in 2011 and beyond have been given. Most drivers will face an increase in road tax with those buying large, new cars paying the most.
Buyers of 4x4s and sports cars will be forced to pay up to A?950 for their first year's tax disc, under plans revealed in the Budget 2008.
In subsequent years the road excise duty for the vehicles will still be as high as A?455, compared with A?300 now. All vehicles will be taxed on a sliding scale of 13 new bands with charges ranging from zero to A?455. The 'showroom tax' targets so-called Chelsea Tractors such as Land Rovers, Toyota Land Cruisers and high-performance sports cars such as Porsches. Owners of some family cars - including the two-litre Ford Mondeo - will find themselves in the top six bands. The Chancellor said he wanted to crack down hard on the 'dirtiest' cars because Britain's 30 million vehicles accounted for 22% of the country's carbon emissions.

Band G will become the midway mark and take in many family cars including the Honda Accord 2.2i. Ministers also announced a reduction in the capital allowances companies can claim on the most polluting fleet cars. The firms themselves will have to carry the burden of the tax rise rather than their employees. The original concept, developed by Istvan Kissaroslaki from Hungary many years ago, hadn’t been able to go to market without substantial financial backing. Interested buyers can reserve one online, and the first cars are expected to be ready in 12 to 18 months. These vehicles are blamed for high emissions of carbon dioxide - the greenhouse gas linked to global warming. The new top band M - for cars emitting more than 255g of carbon dioxide a kilometre - faces the A?455 annual charge from 2010-11 and A?950 in the first year only.
Cars in the free category with the Prius include the VW Polo BlueMotion, Honda Civic Hybrid, Peugeot 107 Urban, Citroen C1 and the Mini Diesel.
The move to raise taxes on company cars is aimed at encouraging employers to offer staff more green-friendly cars.

Designed for use on local roads, the vehicle goes up to 25 miles per hour, with an estimated range of 60 miles.
But in 2010, Stacy Zoern, an American lawyer disabled from a muscle disease, came across the Kenguru online and thought it was just what she needed. From 2010, the first year's tax on a new Mondeo will be A?425 and A?270 annually for older models. Mr Darling said: 'If people choose to buy a more polluting car they should pay more in the first year to reflect the environmental cost. The Kenguru will cost about $25,000, but green energy and mobility tax incentives can bring that price down for qualified buyers.

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