Drivers of gas-guzzling, carbon-emitting 4x4s may consider buying hybrid vehicles instead once their road tax doubles next year. In Gordon Brown's last Budget earlier this year, he announced that drivers of the most polluting vehicles would have to pay £400 a year to tax them, while vehicle excise duty on low carbon-emitting cars would be reduced by 30 per cent. Some cars, such as electric ones, which emit less than 100g of carbon dioxide per kilometre, would be tax-exempt.

When they appeared about seven years ago, hybrid cars cost almost £4,000 more than petrol models. But, says Honda, they are now cheaper to buy and run. 'Hybrids are becoming more mainstream,' says John Kingston, Honda environment manager.

The latest Honda Civic Hybrid (which costs about £16,600) is just over £200 cheaper than its 1.8-litre petrol-only counterpart (at £16,840) - and when the lower running costs of a hybrid are taken into account, the savings are considerable.

Road tax on the Honda hybrid will be just £15 a year, compared with £140 on the petrol version; hybrid drivers are exempt from the £8 a day central London congestion charge; and some boroughs, such as Westminster, charge hybrid drivers less for parking permits.

Kingston says few people understand how a [Honda] hybrid works - and often think they are less powerful. 'The engine is smaller in a hybrid car - a 1.1 litre - but it's supported with a motor which helps the petrol last longer and gives it extra strength, making it exactly the same powerwise as a 1.8-litre petrol engine. It drives like any normal vehicle, with the added benefit that the engine turns itself off when you stop at traffic lights - and while you're braking, energy is being channelled to recharge the motor battery.' He adds that servicing costs for a petrol Civic and hybrid Civic are identical. '

Other main hybrid vehicles are the Toyota Prius (from £17,777 to £20,677) and the Lexus hybrid (from £30,000).       Source: The Observer

The £8-a-day congestion charge in London is to rise to £25 for cars such as 4x4s that emit high levels of carbon dioxide.

Ken Livingstone, the mayor, said yesterday that the proposed rise would apply to vehicles in Band G, the top road tax rate. It would be "a painful regime" aimed at tackling "catastrophic climate change".

Mr Livingstone wants to introduce the new charge by 2009. If successful, a London-wide emissions charge could come in by 2012.

When changes to Band G were announced in Gordon Brown's March Budget, it became clear that it covered more than 800 models, including ordinary family estates, as well as bankers' limousines and "Chelsea tractors".

It applies to any vehicle that puts out more than 225 grams of carbon dioxide per kilometre. The £25 charge would apply to vehicles such as the Range Rover Sport, which emit 374 grams per kilometre, as well as the Ford Mondeo 16V auto, which emits 227.

He said: "There is a growing sense of concern among Londoners about climate change caused by CO2 emissions, which is the biggest single problem facing humanity and tackling this threat requires decisive action."

Angie Bray, the Conservative leader in the London Assembly, said: "Cutting pollution is a good thing but this change will hit small businesses and families, which have to use larger vehicles."

Fresh proposals for congestion charging could spark second-hand turmoil for owners of the most polluting cars, according to experts at the used price bible Glass’s Guide.

Proposed changes to the London scheme, which is widely viewed as the blueprint for other cities around the country, could see the most polluting vehicles charged as much as £25 per day to enter the central zone.

The maximum daily rate would apply to cars with CO2 emissions in excess of 225g/km registered since March 2001. It would also apply to older vehicles with an engine capacity above 3.0 litres. Adrian Rushmore, managing editor of Glass’s Guide, said: “There would be an inevitable and potentially profound impact on the residual values of high emission cars if these proposals come into force.

“There would likely be a surge in part exchanges as some motorists attempt to reduce their daily running costs. The resulting increase in volumes would quickly depress prices, with no prospect of recovery.”

While revisions to the scheme would primarily affect car values around the capital, motorists in other parts of the country could also be hit. “Given that other major cities are looking to follow London’s example, the downturn in values could easily spread beyond the south east,” explained Rushmore. Manchester and Edinburgh are two other cities considering congestion charging.

The flipside is increased values for cars, which emit less than 120g/km, as they would be exempt from congestion charging.

A Green Badge parking scheme offering a 25% discount to drivers of environmentally friendly cars has been launched in Manchester.

Owners of low emission vehicles will be entitled to the discount off a season ticket at the city's NCP car parks.
Some drivers will save over £900 a year under the scheme. In addition, Green Badge holders will be able to park in specially reserved parking bays that are painted green in city centre NCP car parks.

The scheme, which is a joint venture between Manchester City Council and NCP, follows a survey of almost 35,000 cars parked in Manchester that revealed only 2.2% were classed as low emission.

"It is the first parking scheme in the UK designed to encourage drivers to switch to lower emission petrol or diesel cars rather than simply penalise those that run gas guzzlers", said a spokesman for Manchester Is My Planet (MIMP), a programme helping councils and business across Greater Manchester to become greener.

The Green Badge scheme, which is aimed at people who regularly drive into Manchester, is part of the city council's quest to become Britain's greenest city.

Green Badges will be available to owners of vehicles that emit 120g or less of CO2 and 0.02 or less of particulates. More than 30 vehicles currently qualify.

More than half of the people living in Greater Manchester support congestion charging, a survey suggests.

Under the congestion charging plans, electronic tags would be issued to charge people passing through an outer ring bordered by the M60 and an inner ring nearer the city centre.

Drivers will pay a deposit for an electric tag, which will monitor journeys on 15 main routes into the city in the morning and evening rush periods.

The trade-off is £3bn worth of public transport improvements, including a Metrolink expansion.