Darling: Next Budget to hit gas guzzlers

A further crackdown on gas-guzzling cars, more help for families who go green and measures to encourage wind and wave power are on the way.

He told a conference in London hosted by Prince Charles: "It is sustainability that will be at the heart of the next budget."

Mr Darling made clear that gas guzzling cars are in his cross hairs again, on the heels of recent increases in vehicle excise duties on thirstier models.

He said: "If we are going to reduce the harm caused by road transport we need the right incentives and the right rules to cut down on polluting cars, whether it is for the cars themselves or the fuels and energy that power them."

While giving nothing away about specific measures being planned for Budget 2008, he cited policies to promote zero-carbon homes and alternative green energy generators as successful trailblazers.

Mr Darling left little doubt that he is prepared to make controversial decisionsimplying he will use his tax and regulatory powers to the full. "We cannot let short-term costs stop us acting now," he said.

"And as Chancellor, we will not have a Treasury that only sees the cost of acting, but a Treasury that sees the cost in not acting."

As Trade Secretary, the minister published the Government's energy White Paper which pressed for technology to be harnessed to curb emissions in businesses and the home. Hailing sustainability as an opportunity for Britain, he said the booming market for green energy would be worth a million jobs within 20 years, but ignoring the environment would be a grave mistake.

"Ultimately, there cannot be a trade off between a strong economy and sustainable future," he said. "And that is my key message today. There are costs to tackling climate. But there are greater long-term costs if we do nothing here and across the world."

Green policies have played a growing part in recent budgets, with taxes cut on zero carbon homes but raised on landfill waste. Green groups have urged bigger rises in the climate change levy on carbon polluters and heavier aviation taxes, including VAT on aircraft fuel.