The association’s three points cover:

1. Retain 100% First-Year Allowances for low-emission leased cars

The BVRLA says such allowances play a vital role in enabling fleets to bridge the cost gap between low-emission eco-diesel, hybrid and plug-in cars and their higher-emitting petrol and diesel counterparts

However, from April, the Government wants to remove the ability to claim 100% first year capital allowances on low-emission leased cars, while retaining it for direct purchasers, which has been justified by the claim that the Government is worried about the potential for the allowances to be claimed by companies leasing UK vehicles into other countries.

The BVRLA says it has found no evidence of any potential for cross-border leakage of allowances and believes that removing the allowances discriminates against the thousands of businesses who rely on leasing to finance their transport requirements and will encourage them to lease cheaper, higher-emitting vehicles.

It estimates that the removal of 100% first-year allowances for the sector will lead to average new car emissions rising during the next tax year.

2. Review AMAP rates

The BVRLA has highlighted that the current Approved Mileage Allowance Payment (AMAP) system, which reimburses employees who use their car at work, is the only company car tax or allowance that incentivises motorists to drive more.

In most cases, current AMAP rates overcompensate for work use of the average car and as such can provide tax-free extra income to many workers, who have an incentive to drive more ‘business miles’.

The BVRLA wants AMAP rates reviewed and linked to vehicle emissions, to encourage grey fleet drivers to use greener cars and remove any incentive for extra mileage.

3. Re-think the Plug-in Car Grant

The BVRLA comments that the Government’s Plug-in Car Grant has been successful in subsidising manufacturers’ over-expensive list prices, but has struggled to drive significant take-up of ultra-low or zero-emission vehicles.

It adds its view that the Government needs to replace or support the existing grant with guaranteed long-term incentives such as VED-exemption, subsidised charging points and free parking, which would support owners and stimulate demand for used plug-in cars.

In conclusion, the BVRLA's chief executive, John Lewis, said: ‘The leasing industry has led the way in driving down CO2 emissions, helped by a well-signposted tax regime that incentivises fleets and drivers to choose greener vehicles.

‘Unfortunately, this momentum is being threatened by some glaring policy errors that we urge the Government to deal with.’