The association's chief executive, John Lewis, said that its conversations with the Conservative party had ascertained that there are no plans to radically alter the basis on which company cars are taxed.

He said: 'The BVRLA has been in contact with the Conservative central office and can confirm that the party has no plans to change the current company car tax regime. It appears that Theresa Villiers’ comments about the party’s desire to simplify and streamline the wider business tax system may have been taken out of context.

'This is good news because the current company car tax regime has been very successful in giving businesses a clear incentive to reduce emissions and the ability to calculate their fleet tax costs some way in advance.

'After the election we would be happy to work with any government that wishes to simplify and reduce the overall business tax burden. Removing the unjustified diesel supplement would be a good start.'