Motorists need look no further than Škoda after this week’s budget. With family cars firmly in the firing line, Škoda offers some budget busting options thanks to a range of models that produce less than 151g CO₂/km.

From 2009, cars producing less than 131g CO₂/km will be exempt from road tax for the first year giving drivers of the Fabia 1.4 TDI PD (120g CO₂/km) and the Fabia GreenLine (109g CO₂/km), which already fall into VED Band B, a reason to be cheerful.

The two models are also an obvious choice in view of rising fuel prices and a fuel tax rise of 2p/l promised by the Government in October this year - the Fabia 1.4 TDI PD manages a very respectable 61.4mpg and the Fabia GreenLine an impressive 69mpg on combined cycle.

Škoda is just as successful in the estate guise, with its GreenLine model boasting class-leading economy and environmental credentials. The clever combi is the greenest, leanest and most competitively priced estate currently on sale in the UK, with the Mini Clubman achieving the same credentials but for a hefty £3,260 more.

Robert Hazelwood, Škoda’s Brand Director, comments: “The cleaner and greener Fabias not only make financial sense in view of changing legislation but also appeal to the environmentally minded buyer on a tight budget.

“The new budget is an indication of things to come and with the European Commission set to introduce even stricter emissions rules in the near future, we are already manufacturing cars that meet these standard.”

As well as the clean Fabias, Škoda produces the lowest emitting MPV in the UK – the Roomster 1.4 TDI manages 55.4mpg and generates 135g CO₂/km that place it in VED Band C.