Tynwald will be asked next week to approve a further increase in car tax.

Vehicle duty was increased - by 6 % - only last summer. But from April 1, if Tynwald gives the go-ahead, the duty will rise again by a further 3.1%.

There will also be the first increase in duty for heavy and medium goods vehicles for several years and the zero rating for electrically propelled vehicles will be retained.

The increase will see duty for a small 1100cc run-around hatchback increase from £111 to £114, while a vehicle with a 1200-1800cc engine will see duty rise from £173 to £178 and that for a 1800-2500cc engine car will go up from £244 to £252.

Last year, highways chiefs were forced into a U-turn on car tax hikes following an outcry when it emerged that thousands of motorists would be paying much higher rates.

The aim had been to tackle the disparity between fees based on carbon emissions and those based on engine capacity, which were historically lower.

Owners of average older cars with a standard, smaller engine size found they would be hit with the largest increases. But the proposals were withdrawn at the 11th hour by Infrastructure Minister Ray Harmer and Tynwald instead approved a 6% across the board increase. A review of vehicle duty was conducted over the summer.