The SMMT said taxes on higher emitting vehicles had little effect on CO2 emissions and created an “unwelcome market distortion”.

“Introducing what is effectively a sales tax for many new cars is a retrograde step,” said SMMT chief executive Paul Everitt.

“Trying to force people out of high-value cars has no environmental merit and will be seen as a smokescreen for revenue-raising.”

The RMIF also criticised the chancellor's proposals, claiming there were more effective ways to influence the buying habits of motorists than with the “blunt instrument” of road tax.

Rather than “punishing” motorists, Sue Robinson, director of the RMI National Franchised Dealers Association, said the government should do more to encourage carmakers to produce cleaner cars.

“'Instead of punishing motorists for choosing what is available, the government needs to do more to assist vehicle manufacturers to develop cleaner vehicles,” said Robinson.

“Consumers need to be given a proper choice, and manufacturers and vehicle dealers need to be able to give it to them.”