BUDGET measures aimed at promoting the use of environmentally-friendly vehicles could encourage companies to investigate 'green' fleets.

The Energy Saving Trust (EST) said Gordon Brown's Budget sent out another 'clear signal that driving cleaner vehicles not only made environmental sense, but would also deliver financial savings for fleets and individuals alike'.

Responsible for the clean transport initiative TransportAction, the EST believes that the introduction of enhanced capital allowances for the purchase of climate-friendly cars, with CO2 emissions below 120 g/km, will boost sales of such vehicles into company fleets.

A spokesman added: 'I'm sure moves to introduce duty incentives favouring sulphur-free fuels in 2003 will encourage more fleets to look at them. We are encouraged by the clear thought that has gone into the Budget in terms of clean vehicles. There were no downsides – it was all positive.'

But Ian Tilbrook, managing director of ING Car Lease, said Government measures to encourage employees to drive environmentally friendly vehicles could backfire 'due to a combination of company car tax changes and penal increases in fuel scale charges'.