Car carbon emissions

The Chancellor announced the government’s set target of a 60% reduction in carbon emissions by 2050 may be increased to 80% and also revealed the first ever 'Carbon Budget' will be announced alongside next year's Budget.

The Government will ask the EU to set a longer-term target to reduce average new car CO2 emissions to 100g/km by 2020. Last year, a report by the European Commission set car manufacturers a mandatory target to reduce average new car CO2 emissions to 13g/km by 2012.

Road pricing

The Chancellor announced that new funding will be made available to explore local congestion schemes and charging for car travel in order to develop technology for a national road pricing scheme.

Company cars

Ministers also announced a move to raise taxes on company cars, stating the capital allowances companies can claim on the most polluting fleet cars would be reduced.
The Budget report said the move is aimed at encouraging employers to offer staff members a wider range of eco-friendly cars.

Some commentators have remarked that companies will face higher costs for cars that have emissions of 161g/km compared to cars that have emissions of 160g/km. This may mean that some types of cars will no longer be an option for some companies, but top executives will probably want to keep hold of their big cars no matter what the cost.

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