(Wed 09 Dec 09)

Most of the responses to the motoring content of Chancellor Alistair Darling's pre-Budget focus on his decision to introduce a five-year tax exemption, starting in April 2010, for businesses which include electric cars and vans in their fleet.

Renault, understandably, is very enthusiastic, since it will be launching four electric vehicles between now and 2012. Among non-manufacturers, TheGreenCarWebsite is all for it too. "These kinds of tax incentives are very important to nurture green innovation within the industry and develop a market for the cleanest forms of transport," says editor Faye Sunderland. "Electric cars are not perfect, they have source CO2 emissions. But with the support provided for renewable fuels and small-scale electricity production, electric cars will become cleaner over time. For now, one of the best benefits they offer is that they reduce localised emissions and inner-urban pollution. Let's not forget that that alone is a massive threat to human health."

FleetDirectory, however, has slammed the incentives. Marketing Manager Richard Lawton describes the incentives as "nothing more than an easier headline grabber by the Chancellor. If the Government were serious about reducing CO2 emissions among company car drivers then these tax incentives would be available on the most fuel-efficient cars available now, not electric cars that are at least 12 months away from hitting the road. Additionally, this incentive fails to acknowledge the severe lack of recharge infrastructure outside of central London."

The RAC Foundation, by contrast, is in favour, on the basis that the incentives should "help provide a mass market for low-carbon vehicles and encourage a charging infrastructure to be established".

Professor Stephen Glaister, director of the Foundation, has also commented on other aspects of the pre-Budget report, though in less favourable terms. "Motorists' relief that no more fuel duty rises were announced today will be short-lived," he says. "VAT will return to 17.5% on January 1st and that means the current price of a litre of unleaded petrol will go up by 2.5p. And all this is before the 1p above inflation rise already planned for April, and speculation of a further VA T increase after the election.

"While the commitment to continue the M1 upgrade is good news, the medium term outlook for road building and maintenance programs is bleak. Motorists should get used to potholes, as there is little chance of them being filled as the spending squeeze continues to bite and highways spending slips even further down the priority list."

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