Tories target high-polluting cars

• Think-tank proposes 10% showroom price hike
• Low-emission cars would get VAT discounts
• New tax rate for cars emitting over 300g/km of CO2

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The Conservative Party is considering proposals to raise the cost of high-polluting vehicles by up to 10%.

The party's Quality of Life think-tank, led by environmentalist Zac Goldsmith, made the recommendation, which is part of a three-tier system to deter people from buying higher-polluting cars.

The ideas will now be considered for use as official party policy.

Suggestions include:

• A showroom tax to add up to 10% to the cost of vehicles, depending on emissions;

• A variable VAT rate on new cars, ranging from 5% for the greenest to 17.5% for the most-polluting models;

• The introduction of a new Vehicle Excise Duty road tax band for cars emitting more than 300g/km of carbon dioxide, which would cost up to £500 more than the lowest VED band.

Additional recommendations included the introduction of modest grants towards the purchase of low-emission cars and greater costs for higher-emitting company cars.

There's also a long-term goal of making hybrid and diesel cars several thousand pounds cheaper than higher-polluting petrol models.