£1,800 a year road tax !

Owners of Britain's highest-polluting cars should pay up to £1800 in road tax in a bid to cut carbon dioxide emissions, says an influential committee of MPs.

The House of Commons Environmental Audit Committee also says speed limits on motorways and trunk roads should be cut - or more rigorously enforced to reduce the UK's carbon output.

The report welcomed the introduction of variable Vehicle Excise Duty in this year's Budget, where owners of the lowest-polluting cars pay no road tax, while the those with the highest-polluting cars pay an increased rate of £210.

However the committee thinks this should be extended, highlighting proposals by the Sustainable Development Commission that suggested increasing the top VED band to £1800.

The MPs also want the government to consider a return to the fuel tax escalator - which sparked off fuel protests in 2000 - that would increase the cost of petrol above the rate of inflation in order to deter road usage.

Committee chairman Tim Yeo said: 'The Government should take much more decisive action to shift the balance of affordability in favour of trains, buses and lower-carbon cars and lorries.'

Transport minister Stephen Ladyman said he would not rule out doing more on vehicle taxes in the future, but added: 'Bear in mind that people who drive gas-guzzling cars are already paying for a lot of extra fuel.

'Meanwhile, Transport Secretary Douglas Alexander wants to accelerate plans to introduce road charging. The minister is arguing for national standards and prices for road-charging to avoid confusion between different schemes in different cities.