I think more should be done to discourage individual car ownership in cities - after all, this is where most congestion is (apart from certain sections of the motorways where no-one in there right mind would drive unless it's the middle of the night!).
A m8 of mine who lives in Outer London commutes into town every day (I used to cycle everywhere when I was there), but when he needs a car, for say family visits etc he hires one.. Works out a shedload cheaper than buying, insuring and maintaining one, especially as you have to pay up to £200/yr just to park outside your own house in parts of London!
In rural areas, though a car is essential... Where I live there's a bus once a week (Tuesday) to Craven Arms... Or there's a twice daily train service to Swansea (3 hours, takes me 2 to drive it) or 1.5 hours to Shrewsbury (40 min drive..), plus a 4 mile walk to the train station..
And of course our cars have to be 4wd, otherwise I'd never be able to go anywhere in winter!
So rather than riding roughshod over our civil liberties again (Governments love to nanny!), as well as not really addressing problems of innefficient vehicles they should give, say free road tax to pool cars, or hybrids, or even better sink more money into fuel cell research... The manufacturers will only sink so much money into research that may ultimately save the planet because their job is to make profits!