VEHICLE excise duty for all types of vehicles will be increased broadly in line with inflation from November 15. For cars and light commercial vehicles that will see the current rate of £145 a year increasing to £150 a year.

The Government also announced it intended to press ahead with the previous Government's proposal to reduce vehicle excise duty for lorries with clean exhausts, but it also revealed it would extend the scheme to 'clean' buses which, it said, would further improve air quality in urban areas. The reductions will be up to £500.

The Driver and Vehicle Licensing Agency will be able to charge fleet operators, motor manufacturers and dealers for installing a computer terminal and a telephone line to the Agency's Swansea office to take advantage of the new electronic licensing process pioneered by Cowie Interleasing in conjunction with the DVLA.