From today Vauxhall will reduce the cost of all its cars by 2.5 per cent, in line with the Chancellor’s announcement earlier last week that VAT will be charged at 15 per cent, down from 17.5 per cent.

Buyers will be able to take advantage of these savings throughout 2009, which vary from around £150 off the list price of an Agila 1.0i ecoFLEX to just over £773 off the list price of a VXR8 auto.

The VAT reduction also means that the entry model in Vauxhall’s all-new Insignia range – which has just been awarded 2009 Car of the Year, as well as Top Gear’s Executive Car of the Year – looks even more competitive, with an on-the-road price of £15,600.74, a saving of just over £334.