Hands off my Jag! Hutton leads Cabinet revolt over drive for greener cars

He was taking the unpopular decision, he explained, to encourage drivers to dump vehicles that pump out the most pollution.

But it appears some of the Chancellor's colleagues are staunchly refusing to move into the fast lane of the green revolution.

An embarrassing row blew up at a Cabinet meeting over whether ministers should be driven around in cars with high emission levels.

Some ministers are keen to replace traditional British-built ministerial cars with environmentally-friendly hybrid vehicles made overseas such as the Japanese-made Toyota Prius.

Business Secretary John Hutton, however, led a rebellion against plans to ditch petrol-hungry vehicles from the Government's car fleet.

Mr Hutton, who chose a 2.7-litre Jaguar XJ6 for travelling to and from Whitehall, said he needed to be seen in a British vehicle to support domestic car manufacturers.

It would send out the wrong signal if ministers backed proposals that would mean importing more cars, he said.

He was supported by ministers including Justice Secretary Jack Straw and Schools Secretary Ed Balls.

Replacing British-made cars with low-carbon foreign hybrids smacked of "gesture politics", they argued.

But they caused indignation among Cabinet colleagues who insisted ministers must set an example and take the lead in promoting the use of "green" cars.

Transport Secretary Ruth Kelly - backed by Foreign Secretary David Miliband and Environment Secretary Hilary Benn - said the Government's car fleet should be cleaned up more rapidly.

Under Whitehall targets, all cars used by ministers and civil servants should produce carbon dioxide emissions below 130grams per kilometre by the summer.

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Miss Kelly suggested the Government could push for a more ambitious target of 120g/km.

Last year, self-confessed "petrol head" Mr Hutton defended his decision to use the £40,000 Jaguar, telling a committee of MPs: "I support the fact that ministers can choose a hybrid car if that is what they want, but I chose British.

"I would like to see more UK hybrids and there is a real opportunity there for British manufacturers but I do not think that the answer is to force everyone to drive around in bubble cars."

But there are a host of cars made in the UK that are greener and less expensive than Mr Hutton's £40,000 2.7-litre diesel, which emits 214g/km of carbon dioxide.

They include the Toyota Avensis, which is made in Derbyshire, emits 191g/km and costs around £20,000 and the Nissan Qashqai, which is produced in Sunderland, emits 183g/km and also costs £20,000.

They are not, however, among the 85 vehicles used by ministers in the Government Car and Despatch Agency's fleet.

Of the ministerial cars, 53 are environmentally-friendly hybrids - including 40 Toyota Priuses and 13 Honda Civics. The other 32 cars are Rover 75s, Jaguar XJs, Ford Mondeos and Vauhall Vectras.

Mr Darling used his Budget to announce that from April 2010 motorists buying the most polluting cars will pay a "showroom" tax of up to £950, while six more road tax bands will be added.

The higher the carbon dioxide emission level of the car, the higher the road tax.