Masterlease gives its views on the Pre-Budget Report:

"This year’s Pre-Budget speech again shows evidence of the Government continuing its support for the development and adoption of low carbon vehicles through further tax incentives for electric vehicles

"The announcement that benefit in kind will be reduced to zero for the next five years for company car/van drivers selecting electric vehicles will make choosing those vehicles more attractive to employers and employees alike.

"Masterlease is broadly supportive of any legislation that encourages lower emission vehicles.

"In recent years, the fleet industry has led the way in terms of the adoptions of new technologies and we expect no less with electric vehicles.

"Whilst there are still a number of issues surrounding the funding and management of electric vehicles to be resolved, the chancellor’s announcements will encourage debate and action to get answers.

"The Government has now confirmed that as of April 2012 the 10% band for company car tax will apply to vehicles emitting 99g/km or under, with tax rising in increments of 1% per 5g of CO2.

"As expected, this update in taxation will continue to encourage manufacturers to develop lower emission vehicles.

"The annual rise in fuel duty, whilst not unexpected, will not help businesses manage the whole life costs of their fleets.

"The PBR also addressed fuel benefit charges by increasing the multiplier for private use fuel to £18,000 and adding £50 to van fuel benefit charges.

"It remains to be seen what effect the return to 17.5% VAT rate will have on the private car market but this will also have repercussions on the fleet sector.

"The implications of the non-recovery of VAT on contract hire vehicles will effectively mean cost increases.

"New vehicle demand during the early part of 2010 and the success of the car manufacturers will affect confidence throughout the economy and it is essential that the Government continues its support for the car industry so that it can continue to develop new technologies.