Motorists to pay £1.34 a mile in rush hour

The reluctance to rule out differential rates was seen by motoring groups as a shift in policy by Douglas Alexander, the Transport Secretary.

He is an ally of David Miliband, the Environment Secretary, and both are regarded as the "greenest" members of the Cabinet. Ministers have indicated support for moves by two London councils to impose higher charges on drivers of four-by-fours and other high-powered cars.

The Queen's Speech singled out tackling climate change and the threat from terrorism as the legislative priorities for Tony Blair's final session as Prime Minister.

According to No 10, global warming was the "greatest political challenge of our generation", and a new Bill will give legal backing to the Government's target to reduce carbon dioxide emissions by 60 per cent by 2050 and set up a panel to monitor progress.

The Speech set out 29 measures ranging from raising the pension age to 68 over the next 40 years and scrapping jury trials in serious fraud cases. There will be moves to strengthen border controls, prevent illegal working, curb loutish behaviour, push ahead with ID cards and provide free off-peak travel for over-60s and disabled people on local buses in England and Wales.

In the Commons, Mr Blair acknowledged that he was on his way out and gave his most explicit endorsement yet for Gordon Brown to lead Labour into the next election.

With the Chancellor sitting beside him, Mr Blair told David Cameron, the Tory leader, that the poll would be a "flyweight versus a heavyweight" contest.

Labour MPs roared their approval as the Prime Minister claimed that Mr Cameron would soon come within reach of a "big clunking fist" and would be the fifth Tory leader to be carried out of the ring as Labour won a fourth term.

Mr Cameron said Mr Blair used the "politics of fear" to hide his failure. "The tragedy of this Prime Minister is that he promised so much and delivered so little," he said.

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