The Chancellor gave low-emission cars a tax break in the budget yesterday. Ultra-low carbon vehicles will have company car tax halved for the next five years, under new proposals. Those cars which emit between 1 and 75g of C02 per kilometre will see a 50 per cent drop in list price subject to company motor tax .

Many car buyers, whether buying with cash or car finance, are looking to purchase low-carbon vehicles . Zero-carbon vehicles, under the pre-Budget report, will be tax exempt from company car tax for a five year period. The decision doesn’t currently affect UK drivers, because there are very few vehicles with carbon emissions under 88g per km.

The head of business development at fleet provider Zenith Provecta, Ben Creswick, reportedly commented: It has not been a big Budget for the fleet industry but it these measures are helping towards driving down CO2 emissions and ensuring people look after their carbon footprint .