The Government is planning a raft of new environmentally-motivated tax policies, with drivers once again the main target.

According to a leaked letter uncovered in the Mail on Sunday, Environmental Secretary David Miliband confirmed he’s planning a raft of new taxes expected to hit business drivers and companies hard.

In the letter to Chancellor Gordon Brown the minister spoke of introducing pay-as-you-drive taxation to pay for the ‘full environmental impact of a journey made’.

More disturbingly were the Environmental Secretary’s assertion to “maintain pressure on the cost of motoring” and return to a policy of automatic fuel escalator rises.

Miliband is quoted in the letter to Brown urging the Chancellor to consider a “substantial increase in vehicle excise duty for higher emission vehicles, aligning for all car owners the incentive to choose lower emission cars.”

Speaking yesterday to the BBC, the Environmental Secretary refused to confirm details revealed in the letter, but admitted that the government is holding discussions on tackling climate change using green taxes.