VOLKSWAGEN has been “deeply unfair” in failing to compensate British customers over its emissions scandal, a damning report out today finds.

There is also a danger the German car maker “will be able to get away” with the “cynical” behaviour involved in its global fraud.

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VW is blasted by the Transport Select Committee, which calls for the Government to take robust action — including prosecution.

If it fails to do so, the committee warned a similar scandal could happen again.

VW bosses gave evidence to MPs last October, a month after it admitted 11 million cars worldwide were fitted with software that could cheat emissions tests.

That figure included 1.2million cars in the UK.

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The committee’s chairwoman, Labour MP Louise Ellman, says in a report that VW acted “cynically” to cheat the tests.

She adds: “Volkswagen’s evidence to us was just not credible but the Government has lacked the will to hold VW accountable for its actions.

“There is a real danger that VW will be able to get away with cheating emissions tests in Europe if regulators do not act.”

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The report called VW’s decis­ion to compensate US customers — but not UK drivers — with an £11billion deal “deeply unfair”.

Mrs Ellman said that Volkswagen had inflicted “a great deal of uncertainty” on customers.

The Department for Transport said it took VW’s “unacceptable ac- tions seriously” and had taken action to protect UK consumers.