THE number of new vehicles sold in Britain last year reached its highest level in a decade, official figures show.

Some 3.21 million new vehicles were registered in 2015, according to the Driver and Vehicle Licensing Agency (DVLA).

This represents an eight per cent annual rise and is the first time the figure has exceeded three million since 2005.

Car sales rose by seven per cent to 2.6 million, while light goods vehicle registrations increased by 16 per cent to 375,000.

At the end of the year there were 36.5 million vehicles licensed for use on Britain's roads, of which 30.3 million were cars.

Around 30,000 ultra-low emission vehicles were sold in the UK, representing 0.9 per cent of all new registrations, compared with 0.5 per cent in 2014.

Transport Secretary Patrick McLoughlin claimed the figures show Britain's economy is "on the move".

He said: "We are determined to deliver better journeys to drivers, which is why we are making a £21bn investment in our roads, which is the biggest in a generation.

"I am pleased to see that registrations of ultra-low emission vehicles have soared by nearly 90 per cent in a year as drivers see the advantage of cleaner, greener vehicles that are cheaper to run."

The RAC welcomed the sales figure for ultra-low emission vehicles but noted that from 2017 owners will be required to pay the same in duty after the first year of registration as the vast majority of other vehicles.

A spokesman added: "We hope this change does not undermine the progress made in encouraging people to switch to cleaner, more efficient vehicles."

Last month the Government cut subsidies for people buying an electric car.

More than 50,000 motorists have taken advantage of the plug-in car grant worth up to £5,000 since it was introduced in 2011.

But from March 1 the scheme was reduced and replaced by a tiered system.

Vehicles with a zero emission range of more than 70 miles are eligible for up to £4,500, while those with a shorter range - such as plug-in hybrids with a petrol or diesel engine - can receive £2,500.

Government advisers the Committee on Climate Change warned last year that 9% of new car sales should be electric vehicles by 2020 for the UK to meet its legal obligation to cut greenhouse gas emissions by 80% by 2050, compared with 1990 levels.

The Campaign for Better Transport warned that the growth in the number of vehicles reflected the "worrying levels of car dependency in the UK".

The organisation's sustainable transport campaigner, Bridget Fox, said: "We need action from Government to invest in better public transport, walking and cycling routes and get more freight traffic off our roads and onto rail.

"That will give people real choice in how they travel."