Axe road tax and fuel duty says Nick Clegg

11.52.00am UTC (GMT +0000) Wed 4th Jun 2008

No road tax or fuel duty - but drivers charged up to 12p a km

Road tax and fuel duty should be axed - but drivers would then be charged up to 12p a kilometre - under plans put forward by Liberal Democrat leader Nick Clegg. The most polluting vehicles would incur a higher "showroom tax" and hauliers face a national lorry road user charge under a "sustainable and fair" system. However, Mr Clegg said his plans for higher Vehicle Excise Duty rates - rising to £2,000 a year on the most polluting cars - would only be a temporary measure until the tax was scrapped altogether within 10 years of a Lib Dem government.

At that time, fuel duty would be cut as well and road charging introduced at 8p a kilometre for motorways and trunk road. This could increase to around 12p for cars that pump out the most greenhouse gas emissions, while the most efficient vehicles would pay nothing.

Domestic air travellers would also face a new surcharge, raising £500m a year, to encourage people to take the train, under the Lib Dem plans. And there would be a 15-year priority programme of improvements to the rail network, including the introduction of high speed links between London, Heathrow Airport, Birmingham and Manchester.

Only the Liberal Democrats are setting out how to make our transport system sustainable, affordable and fair