Chancellor Alistair Darling has confirmed plans to introduce reforms of capital allowances on business cars to promote the uptake by fleets of cleaner cars.
He also said that the limit on new car emissions should be a much tougher 100g/km – this limit will come into force in 2020.
Much of his thinking behind promoting greener cars came from the second part of the King Review, which is published today.
Mr Darling said that by switching to the cleanest cars on offer, motorists can save substantial amounts on fuel costs.
He has also made it more expensive for those who buy higher polluting cars after he promised to introduce an extra green tax that will be payable over the first year after registration.