If you think the only way of getting around never-ending fuel price rises and emissions-based taxes is to down-size your vehicle, think again.

Your options are no longer limited to choosing between a city car or a hybrid – as Volkswagen has added the Golf to its Bluemotion line-up.

The tried-and-tested 1.9-litre TDI diesel engine has been fitted with a fresh turbocharger, while the five-speed manual gearbox benefits from revised ratios to maximise economy. Aerodynamic enhancements, as well as harder-compound tyres for lower rolling resistance, complete the changes.

From the outside there’s little to set the Golf Bluemotion apart from other models in the range. And in the Match trim of our car, you even get a set of smart alloy wheels.

But fuel returns are boosted to 62.8mpg and emissions are slashed to 119g/km. As a result, annual road tax is only £35 and, from 27 October, this variant will be exempt from Lon­don’s daily congestion charge.

You don’t have to cut back on comforts, either. The Golf Bluemotion is fitted with air-conditioning, as well as six airbags, a CD player and powered windows as standard. It drives well, too. Although the diesel engine is short on low-down torque and you will need to make use of the gearshift to keep up with traffic, the newcomer feels much quicker than the official figures suggest.

Handling and ride comfort are among the best in the class, as we expected, and while the harder tyres limit ultimate grip, the Golf is more than capable in normal driving.

Although the Bluemotion carries a £520 premium over the regular car, its simple changes hold obvious appeal to cost-conscious motorists.

In entry-level S trim, the five-door Golf Bluemotion is £16,065. But we prefer the Match version. For £680 more, it includes sports suspension, cruise control and those alloys.

RIVAL: Toyota Prius
The Japanese hybrid puts out 104g/km of CO2 – less than the Bluemotion. Yet when it comes to economy, its advantage is not so clear-cut, as the Prius is thirstier on the motorway. It certainly can’t match the VW’s driver appeal, and at £17,780 is much pricier, too.