The announcement is part of an official commitment to give fleets a three-year programme for company car tax, as drivers have to make a long-term commitment when choosing a business vehicle.
Before the Budget, Brown had come under pressure from all sides of the motoring industry not to change the tax bands.
Stewart Whyte, director of Association of Car Fleet Operators, said: 'It is what ACFO called for and we are delighted the Government has listened.
'We hope our calls for longer-term strategic stability have finally been heeded and that the Treasury departments will now give us at least one full replacement cycle as a preparation time.'
ACFO has argued that fleets buy and operate the most environmentally-friendly cars in the UK, but they could only do that if vehicle technology continues to move forward. In private meetings with Government, they had revealed that year-on-year increases in company car tax were moving ahead of available clean technology. John Lewis, director general of the British Vehicle Rental and Leasing Association, had also joined the industry call for a freeze.
He said: 'The effectiveness of the present rates is clearly demonstrated by the exceptionally high levels of diesel-engined vehicles being taken on to fleets which in some cases exceeds 75% of all new contracts.'
The BVRLA felt that increasing rates would have had an unnecessarily harsh impact on the company car driver. The freeze could reinforce a growing move back to company cars that the BVRLA has already noted.
Nigel Underdown, head of customer relationships, Bank of Scotland Vehicle Management, said the announcement showed the Government had accepted 'enough is enough'.
|BIK from April 2004|
|P11D % to be taxed||CO2 (g/km)||CO2 (g/km)||CO2 (g/km)|
** adds 2% if car runs solely on diesel
*** add 1% if car runs solely on diesel
**** maximum charge so no diesel supplement