Ms Jenner commented: 'Future changes in company car tax rates and capital allowances will drive fleet managers and drivers into lower emission cars at a faster rate.

'The Government’s decision to tighten company car tax rates by one percentage point up to the end of the 2014/15 tax year and then by two percentage points in 2015-16 and 2016-17 means that the lowest CO2 emitting vehicles will find their way on to fleet choice lists in a bid to keep tax bills in check.

'Similarly, far-reaching changes in capital allowance rates from April 2013 will have a similar impact with 130g/km of CO2 becoming the de facto benchmark for company cars instead of the current level of 160g/km.

'Additionally, the Chancellor’s decision not to extend 100% first year capital allowances on low emission cars to leased models may well see some fleets reconsider their options in relation to these vehicles. However, detailed financial modelling will have to be undertaken to calculate the impact of such changes,' she added.

'Finally, we welcome the Chancellor’s decision to remove the 3% diesel supplement on benefit-in-kind tax from April 2016, which is something that ACFO has been campaigning for many years.

'ACFO is disappointed that the Chancellor has decided to press ahead with the August 1, 2012 3.02p per litre rise in fuel duty.

'ACFO had called for the duty increase not to go ahead as, with fuel prices already at record levels, the rise will further impact on business costs,' Ms Jenner concluded.