THE Government says it is not anti-diesel and has pledged to review company car tax and Vehicle Excise Duty penalties for the fuel.

Stephen Timms, Financial Secretary to the Treasury, said: 'We recognise that there is progress being made in diesel technology and it may be possible to waiver the diesel supplements in the future.'

Peugeot managing director Tod Evans warned that the Government was out of step in its approach to diesel after the Budget. But in an important concession, the Government said it would consult on the possibility of wiping out penalties for the cleanest diesels and could introduce tax incentives for ultra clean oil burners.

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