Smith Electric Vehicles is celebrating, after leading a successful campaign to win UK tax breaks for electric vans.

In a statement it said:

"The Chancellor Alistair Darling, in his Pre-Budget Report, today announced a 100% capital allowance for companies purchasing electric vans.

"This means fleet operators can write down the entire cost of buying an electric van in the first year of ownership.

"Electric vans cost much less to run than diesel vehicles, but at present are up to three times more expensive.

"The tax incentive will help to bridge this cost gap and boost sales, which in turn will drive volume production and lower the cost of electric vans.

“This welcome tax incentive will make electric vans much more appealing to fleet operators across the UK, as it removes a cost barrier to purchasing these new technology vehicles.

“The UK already produces the best electric vans in the world; now we also have the opportunity as a nation to lead the way in buying and using these environmentally-friendly vehicles.

“Today’s announcement marks the successful conclusion to a long campaign by Smith Electric Vehicles to win capital allowances for electric vans.

"We have made representations at the very highest level of Government, so we are delighted that Government has listened and acted to support us.”