A UK government minister has made remarks raising the possibility that Volkswagen Group will have to compensate drivers for lower resale values on models affected by the company's diesel emissions scandal and subsequent recall.

Patrick McLoughlin, the UK government's Transport Secretary, said that Volkswagen “will have to address” the falling resale value of cars after the emissions scandal.

McLoughlin told the House of Commons that Volkswagen "will have to address" the issue after an MP suggested that the Germany car company should bear the cost.

Mr McLoughlin also told MPs that the company has "acted disgracefully" throughout the scandal, which has affected more than one million vehicles in the UK.

The Daily Telegraph reported that the value of used Volkswagen cars sold in Britain fell in September at a time when average valuations rose.

The Telegraph report said that the Transport Secretary was asked if he agreed that the "full financial implications" should be "given to the feet of Volkswagen and Audi". McLoughlin replied: "That is one of the issues which I think VW will have to address in due course."