Hutton defends car tax proposals

But Business Secretary John Hutton said future generations would pay the price if the Government did not face up to its climate change responsibilities.

He said the Government was right to use tax to encourage motorists to drive greener cars.

Government advisors say drivers of 24 of the 30 most popular cars will be "either better or no worse off".

But privately, some government figures think the statistical analysis of new car taxes is confusing, and they fear that no one will benefit financially from the new green levies.

Mr Hutton, speaking in Cambridge, called for "revolutions" in the transport system and in energy efficiency. He said new taxes were right because they signalled that drivers of the greenest cars would gain the most benefit.

"We have got to incentivise and encourage people to make greener choices," he said. "I think it is the right thing to do - to send a signal."

He accepted that the Government was faced with difficult decisions that were unlikely to win votes but said ministers were trying to get the "right balance".

"We do face a very serious situation," he said. "That is why we are being serious about climate change and not simply passing on the costs to our children and grandchildren."

He added: "Measures will be needed to help those most at risk of fuel poverty because going green cannot mean going without. But there will be a bigger price to pay if we do nothing."