• Note - the government has announced that it will postpone the changes below to road tax. For an updated story on new road tax changes and the Chancellor's 2008 pre-budget report, click here.
Road tax will be regraded to encompass bands from A-M, to punish those who buy the most polluting vehicles and encourage manufacturers to drive down emissions from their cars.
On top of the highest rates will be a so-called 'showroom tax' that will mean high polluters will pay an even higher rate for the first year.
Cars emitting more than 255g/km that are bought new from 2010 would be subject to the highest rate - paying up to £950 in the first year and £455 every subsequent year.
Owners of vehicles registered since 2001 will be liable to the road tax changes - with the government saying that 55 per cent of vehicles will be subject to higher rates, and 33 per cent paying less.
Owners of older vehicles will pay £120 for vehicles at 1,549cc and below, and £185 for vehicles above above 1,549cc.
Vans and VED
All vans registered prior to March 2001 will pay £185; Euro IV vans registered between March 1 2003 and December 31 2006 will pay £120; Euro IV vans registered after December 31, 2006 will pay £180.
Below is a list of how road tax bands will change over the next three years, and a sample of vehicles placed in each bands.
New road tax rates
Annual VED rates current-2009
• Band A (up to 100g/km) - no fee
• Band B (101 to 120g/km) - £35
• Band C (121–150g/km) - £120
• Band D (151–165g/km) - £145
• Band E (166–185g/km) - £170
• Band F (186–225g/km) - £210
• Band G (greater than 225g/km) - £400
Annual VED Rates in 2009-10
• Band A (up to 100g/km - no fee
• Band B (101-110g/km) - £20
• Band C (111-120g/km) - £30
• Band D (121-130g/km) - £90
• Band E (131-140g/km) -£110
• Band F (141- 150g/km) - £120
• Band G (151 to 160g/km) - £150
• Band H (161 to 170g/km) - £175
• Band I (171 to 180g/km) - £205
• Band J (181 to 200g/km) - £260
• Band K (201 to 225g/km) - £300
• Band L (226 to 255g/km) - £415
• Band M (Over 255g/km) - £440
Annual VED Rates in 2010-11
• Band A (up to 100g/km CO2) - no fee
• Band B (101-110g/km CO2 - £20
• Band C (111-120g/km CO2 - £35
• Band D (121-130g/km CO2 - £95
• Band E (131-140g/km CO2) - £115
• Band F (141- 150g/km CO2) - £125
• Band G (151 to 160g/km CO2) - £155
• Band H (161 to 170g/km CO2) - £180
• Band I (171 to 180g/km CO2) - £210
• Band J (181 to 200g/km CO2) - £270
• Band K (201 to 225g/km CO2) - £310
• Band L (226 to 255g/km CO2) - £430
• Band M (Over 255g/km CO2) - £455
Annual VED rates for new cars bought in 2010-11, including showroom tax
• First-year VED Rates in 2010-11
• Band A (up to 100g/km CO2) - no fee
• Band B (101-110g/km CO2) - no fee
• Band C (111-120g/km CO2) - no fee
• Band D (121-130g/km CO2) - no fee
• Band E (131-140g/km CO2) - £115
• Band F (141- 150g/km CO2) - £125
• Band G (151 to 160g/km CO2) - £155
• Band H (161 to 170g/km CO2) - £250
• Band I (171 to 180g/km CO2) - £300
• Band J (181 to 200g/km CO2) - £425
• Band K (201 to 225g/km CO2) - £550
• Band L (226 to 255g/km CO2) - £750
• Band M (Over 255g/km CO2) - £950
Typical cars in new road tax bands*
• Up to 100: VW Polo Bluemotion 1.4 Tdi (diesel)
• 101-110: Skoda Fabia Estate Greenline (diesel), Toyota Prius 1.5 VVTi Hybrid, Citroen C1 1.0i, Peugeot 107 1.0
• 111-120: Mazda 2 1.4 (diesel), Smart fortwo coupe, Vauxhall Corsa 1.0i ECO 12v 3-door hatchback
• 121-130: Kia Picanto 1.1 (petrol), Renault Megane Hatchback 1.5 dCi 106,(diesel)
Ford Focus 1.6 TDCi (diesel)
• 131-140 Renault Clio 1.2 Quickshift (petrol), BMW 3 Series 320d Coupé (diesel), Toyota Yaris 1.3 VVT
• 141-150 Citroen C4 Picasso 1.6 HDi (diesel), Ford Ka 1.3, Mercedes Benz A-Class (petrol)
• 151-160 Audi A3 2.0 Tdi (diesel), BMW 3-series 320i, Vauxhall Astra 1.4i 16v
• 161-170 Citroen C5 2.2 Hdi Est (diesel)
• 171-180 Ford Mondeo 1.6 Estate (petrol)
• 181-200 Saab 9-3 Estate (petrol)
• 201-225 Peugeot 407 saloon 2.0 Auto (petrol)
• 226-255 Peugeot 807 2.0 Auto (petrol)
• Over 255: Land Rover Sport Auto 3.6 TDV8 (diesel), Porsche Cayenne 6-speed, BMW X5 series E70
* Figures are in grammes per kilometre of carbon dioxide