By this summer, all cars used by ministers and senior civil servants are to have carbon emissions below 130 g/km, a standard ruling out big British-built marques such as Jaguar and Land Rover.

Kelly has suggested the government push for an even more ambitious target of 120 g/km - a proposal backed by foreign secretary David Miliband, according to the Financial Times. Business secretary John Hutton has criticised the plan to import vehicles from abroad, saying it could discourage domestic manufacturers. Hutton's view was backed by other senior ministers, including justice secretary Jack Straw and schools secretary Ed Balls. The Cabinet dispute has risen amid new evidence that the government is failing to reduce its carbon emissions as planned.