The Society of Motor Manufacturers and Traders has urged a long-term and consistent approach to company car tax in a pre-budget letter to the Chancellor.

The budget will be announced next  Wednesday (March 12), by the Chancellor Alasdair Darling.

“This will send the right signals to the market, creating a framework which encourages customers to buy the cleanest cars, vans, trucks and buses,” said the SMMT.

“New vehicles are cleaner, safer and more secure than the models they replace.”