Speaking at the party's annual conference in Brighton, LibDem leader, Sir Menzies Campbell, described his party's proposals as the "most radical ever from any major UK political party" and emphasised "Liberal Democrat leadership is needed if Britain is to play a role its proper role in dealing with climate change".

As well as benefiting the environment as a result of tax changes, the party estimates that more than 28 million people will receive a tax cut from introducing new greener measures.

"It will also shift the tax burden from hard working people and on to the polluter," said Sir Menzies, who described the "green tax switch" as a "greener tax and fairer tax".

In his speech, Sir Menzies called once again for fuel duty to rise in line with inflation and increase road tax to £2000 on the most polluting cars, and criticised the current Chancellor's increases.

"The best the Chancellor has managed is a rise in Vehicle Excise Duty of £40 for the most polluting cars. That's about one cappuccino per month in the parts of London where Chelsea tractors plough the streets," said Sir Menzies.

As well as VED and fuel duty increase, businesses might be hit by a proposed universal carbon tax on emissions that could perhaps see both business and company car users published for the amount of CO2 company cars emit.

The Liberal Democrats are about to deliver over a million leaflets up and down the country, urging British people to support the parties "Green Tax Switch".

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