Motorists will be paid up to £3,000 a year to ditch their cars under government-funded plans to cut congestion and air pollution.

A trial this year will provide motorists with cash to be spent on public transport, electric car hire and bike sharing schemes in exchange for giving up their vehicle. The project, the first of its kind in the UK, is designed to drive polluting vehicles off clogged city streets.

Cash credits will be loaded on to a travel card and smartphone app to spend on public transport, car sharing or green hire schemes. Motorists will be expected to surrender their car for a period to test the amount of money needed to trigger a long-term change in travel habits.

The project — funded