Diesel drivers face higher taxes under a scheme designed to penalise the fuel, the chancellor announced.

From April, the first year’s vehicle excise duty for diesel cars that fail to meet the latest standards will move up by one tax band, Philip Hammond announced.

Although more details will be set out later in the day, when the Treasury publishes its Red Book with policy details, this would appear to exclude euro6 diesel engines, the latest technology that the industry claims is clean.

The government will also “clarify the law” so that motorists who charge their electric vehicles at work do not face “benefit in kind” charges.

It has set aside £200m – which will be match funded by industry – to promote the roll out of electric charging points, as well as another £100m towards discounts on battery cars for consumers.

The chancellor on Wednesday also announced a £220m clean air fund.

More details are expected later.

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