The chancellor has raised the road tax on "gas guzzling" vehicles in his tenth Budget, while lowering tax on those cars that pollute the least.

Those cars which produce the most carbon dioxide have been hit with a 24 per cent levy, as the government seeks to provide incentives for greener cars.

Gordon Brown said he would increase annual car tax on vehicles which emit more than 185 grams of carbon dioxide per kilometre as part of the government's plans to reduce the UK's carbon emissions by 60 per cent before 2050.

Confirming the heavily trailed aspect of this year's Budget announcement, Gordon Brown revealed that duty rates of £210 will be levied on the one per cent of vehicles with the highest rates of emission.

The 4x4s and other off-road vehicles used in urban areas have long been labelled the most-polluting on the road, although some critics argued the chancellor should have gone further.

Stephen Joseph, director of Transport 2000, said it was positive but called for stricter rules.

"Clearly this is a well intentioned step on the road to influencing car choice but for it to work we need to see a much greater tax difference between small and large cars," he said.

From today duty rates will be zero, £40, and then £100, £125, £150, £190 up to the new top band of £210, Mr Brown said today, claiming that this will help pay for five million more fuel efficient cars to have their duty cut.



Ÿ Adfero Ltd