Currently, petrol-engined cars emitting between 99g/km and 120g/km fall into the lowest BIK bracket at 10% while low-emitting diesels are taxed at 13% because of the 3% diesel surcharge.

However the Chancellor's decision to tighten the lower limit for low-carbon vehicles from April 2013 reduces that bottom BIK threshold to 94g/km or below.

Drivers of the latest Ibiza E Ecomotive will still qualify for the very lowest diesel BIK rate of 13% thanks to the model's CO2 emissions of 92g/km.

SEAT UK head of fleet & business sales, Nick Andrews, said: 'The revisions to company car tax arrangements announced by the Chancellor this week will only serve to strengthen the Ibiza's case with business customers who, understandably, are watching every penny at the moment.'

Prices start at £13,490 RRP for the Ibiza SC S A/C E Ecomotive.