The first registration fee for new car sales will rise by 10% on April 1 from £50 to £55.

The move is expected to generate an additional £11 million for the Treasury.

Paul Everitt, Society of Motor Manufacturer’s and Traders chief executive, said: “We hope this is not a move by the Treasury to plug holes in its finances.

“In the grand scheme an extra £11 million in tax and a fiver for new car buyers might not sound like much. However, we fear that this every-little-helps approach could be the basis for further changes to motoring taxes in March's budget.”

With new car sales forecast to reach £2.34 million over the next 12 months, total revenue from the tax will raise £128 million.

The fee was introduced in 1998. Originally, it was set at £25. However, successive rises have seen it more than double in a decade.