The Chancellor has announced a report into how the UK could develop a greener road transport system to be co-authored by Nicolas Stern, famed for his report on the Economics of Climate Change.

Professor Julia King, vice-chancellor of Aston University and former director of advanced engineering at Rolls-Royce, will also lead the review to examine the vehicle and fuel technologies, which over the next 25 years could help to ‘decarbonise’ road transport, particularly cars.

In the Budget Report the Chancellor said: “The Review will draw upon expertise in industry, both in the UK and internationally, and across Government, in the Department for Transport, Defra, DTI and HM Treasury. It will feed into the work of the Energy Technologies Institute. The secretary of state for transport will set out the terms of reference for the review shortly.”