A Portslade car dealership is set to cut its prices to match those on the Continent, fighting back against consumer groups' claims that British motor buyers are being ripped off.

Mercedes-Benz seller Rivervale is offering price cuts of up to 20 per cent from September 1, knocking nearly £15,000 off the cost of some models.

It has announced an average discount of nine per cent on the recommended retail prices of cars across the Mercedes range.

Falling prices in the showroom follow a long campaign to bring costs down.

The Government told car makers to cut prices after a Competition Commission investigation found British car prices were 10 to 12 per cent higher than those on the Continent.

The motor industry has always denied consumers are getting a bad deal.

At the lowest end, Portslade punters can save £1,700 on an A140 Classic. Big spenders can get £14,600 off an S500 limousine.

Rivervale sales director Jeffrey Nailard said: "This is great news for our customers.

"By effectively putting prices on a par with Europe, we are now setting a new benchmark in the prestige car market for those people who may have previously been tempted to buy abroad."