The motor industry representative body, the SMMT, gives its reaction to the PBR:

"The SMMT is pleased that chancellor Alistair Darling has announced investment and support for low carbon technologies, with particular assistance to boost demand for electric vehicles. 

“2010 is set to be another extremely difficult year for the UK motor industry as increased VAT and first year VED rates directly impact on consumer demand.

"The opportunity is to take advantage of the transition to low carbon vehicles, with new incentives for company car drivers and van buyers, as well as extra resources for collaborative research and development.

"The chancellor identified low carbon technologies as a window to inward investment, a view supported by industry, as is the introduction of incentives for electric vehicles.

"These incentives, set to come into effect from April 2010, give company car drivers the option of paying 0% benefit-in-kind tax by opting for an electric car, while commercial operations will pay no Van Benefit Charge for five years in addition to profiting from 100% first year allowance when buying an electric van.

"Investment in small and medium enterprises (SME) is essential as industry is built on the foundation of these companies.

"During the past year, it has been unclear how businesses can access this support, so with the chancellor’s renewed backing for SME assistance, SMMT hopes for greater clarity."