FLEETS and motoring organisations have poured scorn on the introduction of graduated Vehicle Excise Duty in this year's Budget as simply 'tinkering at the edges' of moves to encourage greener motoring.

In his Budget speech, on Tuesday, Chancellor of the Exchequer Gordon Brown announced that VED for vehicles with engines under 1,100cc will be £100 from June 1 at a cost to the Government of £85 million over the next year, and keeping the Government's promise to encourage 'cleaner greener vehicles'. But the charge for all other vehicles will be £155, an increase of £5, with immediate effect. Brown also announced that new VED rates for new cars from autumn 2000 will be judged on their CO2 emissions.

The move follows the launch of the Government's consultation document on VED reform. At the time fleets warned the scheme would fail, using the Government's own figures to show that some larger engined cars were cleaner than small engined cars.

• For your free ACL guide to how this Budget affects company cars - published in conjunction with Deloitte & Touche - click here.