The move means that prices for the new S-Max now start from £20,645, with the new Galaxy priced from £22,945 and the latest Mondeo priced from £17,295.

Combined with the lower CO2 ratings of Ford's new large car range, the lower recommended list prices will also lower P11D tax ratings, increasing the appeal of Mondeo, S-MaX and Galaxy for company car drivers.

Nigel Sharp, managing director Ford of Britain, said: 'Ford's traditional high recommended list price, high discount approach was causing some confusion and incurred a disadvantage for company car drivers.

'That formula served us well in the past,' he added, 'but today's web-savvy consumer is better equipped to shop around and we have to make it absolutely clear that our own dealers are the best place to start for the keenest deals.'

At the same time as reducing the recommended list price Ford will be reducing dealer discounts. This initiative is called "Blue Tag pricing" and will be debuted on the S-Max and Galaxy – Ford's declared ambition is to continue to extend Blue Tag pricing principles to all future models. An interim marketing offer, effective April through June, will match the value represented by "Blue Tag" across the remainder of the Ford passenger car range – including the top-selling Focus, Fiesta and Kuga.