COMPACT, economical, low emissions - just the sort of car that the Government and the tax-grabbing bureaucrats running Richmond council should be bending over backwards to encourage us to drive.

Not a bit of it. Despite its apparently green credentials, there are surprisingly few fiscal incentives for drivers to take to the wheel of the well-made and even better-equipped Colt Blue.

And that is a great pity, because the three-door Colt is a good looking and surprisingly capable hatchback.

Created following the success of the Red and Black models, the Colt Blue comes with an array of interior and exterior kit along with guaranteed low running costs, thanks to a 1.1-litre three-cylinder engine.

This is a lively enough unit, though when pushed harder some engine noise does intrude.

There is another trade-off between style and comfort. The Colt has striking Atlantis Blue metallic paintwork and colour-coded bodywork and also sits on a set of smart 16-inch alloy wheels.

But those large wheels and correspondingly large tyres do pick up a fair bit of road noise, though, like the engine noise, this only intrudes at higher speeds.

Around town, the Colt copes perfectly with everything you can throw at it.

It will manage three adults in the rear seats at a pinch and though bootspace is limited, the rear seats are versatile enough to quickly transform it into a decent load carrier. The Colt cannot be faulted on the economy front with its combined fuel economy figure nudging the 50mpg mark.

Neither can you fault the fit and finish of the little car which has a blue interior, complemented by a blue and black leather- trimmed steering wheel and gearshift knob.

The equipment list includes everything from remote central locking, electric front windows and CD player to the sliding rear seat, anti-lock brakes and twin airbags fitted to all Colts.

In addition, the Blue has a range of features you normally associate with much larger, and more expensive cars, including automatic headlights, automatic wipers, upgraded MP3-compatible, six-speaker sound system and side airbags.

The surprising thing is that its carbon dioxide emissions of 135g/km place the Colt Blue in Band C for road tax.

Richmond councillors have decided to offer free parking permits only to vehicles in Band A and there are precious few vehicles on the road in that band.

Even the petrol/electric hybrid Toyota Prius and Honda IMA are placed in Band B, so that concession amounts to clear tokenism.

Auto facts Colt 1.1 Blue 3dr

  • Price: £8,499
  • Ins group: Three
  • Fuel consumption (Combined): 49.6mpg
  • Top speed: 103mph
  • Length: 387cm/152.3in
  • Width: 169.5cm/66.7in
  • Luggage capacity: 7.7 cu ft
  • Fuel tank capacity: 10.3 gallons/47 litres
  • CO2 emissions: 135g/km
  • Warranty: 3 years/unlimited mileage