The Mayor of London, Sadiq Khan, has called on government to implement his new proposals for a national diesel scrappage fund that financially compensates motorists.

The Mayor has said tackling air pollution in the capital is a priority, and wants to take the most polluting vehicles off the roads.

He has delivered a report jointly developed by Transport for London and Cambridge Economic Policy Associates, which provides a framework for a national scrappage fund.

It includes modelling which other UK cities could use to produce their own scheme and a subsequent share of funding required.

The package of proposed measures include:

• payments of £3,500 to scrap up to 70,000 polluting vans and minibuses in London and a national fund to support charities and small businesses that often own older diesel and mini buses (approximately £245m in London);

• a credit scheme valued at £2,000 to help low-income households in cities (those with incomes lower than £231.60 per week after housing costs) scrap up to 130,000 polluting cars, with incentives for car clubs (costing approximately £260m in London);

• payments of £1,000 to help scrap up to 10,000 older polluting London taxis (this is in addition to extra TfL help for drivers to upgrade to greener taxis): traditionally the taxi trade has had a limited choice of heavy, polluting diesel vehicles but this proposed fund would be used alongside wider existing support to help drivers switch to new zero-emission models (approximately £10m in London).

Khan said: “The toxic state of our air leaves us with no choice but to rid our city of the most polluting diesel vehicles. It is shocking that nearly half of new car sales in the UK are still diesel vehicles and the national system of vehicle excise duty still incentivises motorists to buy these polluting cars.

“I’m urging government to immediately review this policy and today I’ve delivered a detailed report on how government can deliver an effective national diesel scrappage fund. One that both fairly compensates motorists and rapidly helps clean up our filthy air.

“A national diesel scrappage fund is the cost effective way to deliver significant emission reductions while reducing the economic impact on those most affected, such as small businesses, charities and low income households.

“For years government has incentivised and encouraged people to purchase diesel cars it is only fair that they now helps people to switch to cleaner alternatives.

“The government needs to help us clean up the dangerous air in London.”