A Euro MP has warned Britain will fail to cut the number of old cars abandoned on the streets because of a lack of money.

Sussex MEP Chris Huhne has warned Britain is set to miss by months the April deadline for implementing a new EU environmental law requiring the Government to fund measures to reduce pollution and increase recycling.

He has accused Whitehall departments of confusion and dithering.

With two million cars scrapped in Britain each year, the Liberal Democrat member claims if the Government makes the wrong decisions it will make disposing of old fridges pale into insignificance.

Abandoned cars are already a major problem for councils which pay money to get rid of them.

Mr Huhne said this was getting worse because low scrap prices have taken away incentives to encourage proper disposal.

Metal processors are warning they may be unable to accept old cars unless they are compensated for the cost of the new requirements.

The EU End-of-Life Vehicles Directive, which is due to be turned into British law by April 21, requires the removal of all dangerous materials in old cars.

Although car manufacturers will become responsible for the disposal of the vehicles they made from 2007, the Government has to provide a financial bridge until then.

With the cost of the anti-pollutant measures estimated at £50, and the scrap value of old cars now less than £30, metal processors are to invest in equipment to do the job until firm payment arrangements are agreed.

But Mr Huhne said that the Government had yet to say how the costs would be met or even to agree exact details of the work which vehicle dismantlers will be required to carry out.

He said: "The new EU rules were agreed just 18 months ago but officials have been discussing them for more than six years and ministers still haven't even made the basic decisions about how to finance the work."

The MEP is suggesting a disposal tax should be imposed on new vehicles and tougher registration requirements.