Mike Waters, director market insight at Arval, said:

VED

“This report was focused on the current economic situation, so the announcement to effectively postpone the impact of changes to VED bands came as no surprise.

 

"A retrospective system would have affected some 2.3 million motorists at a time when money is tight.

"Drivers often run older cars because they can’t afford to purchase more efficient alternatives making any environmental benefit unlikely.

“From an environmental perspective, the chancellor must utilise the budget to influence future behaviour.

"Therefore taxing drivers on a decision that they made several years ago appears to be a move motivated more by finance than the environment.

"With a green justification, introducing significant change at this point would have been painful to drivers and damaging to the credibility of future environmental taxation.

“We would like to see a greater recognition of the efforts drivers make to reduce emissions during the vehicles life rather than a simple measure aimed at vehicle purchase alone.

Fuel Duty

“An increase in fuel duty will come as a blow to drivers at a time when the pressure of rising fuel prices had subsided.

"This move reinforces the importance of individual drivers making their fuel go further and puts pressure on fleets to make proactive fuel management a prerequisite for effective business vehicle management.”