Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, for what reasons the benefit-in-kind surcharge for diesel has been increased from three per cent to four per cent; and what assessment he has made of the effect of this increase on leases which were agreed on the basis of a three per cent supplement.

Road transport is responsible for 80% of nitrogen dioxide emissions in roadside tests. Even the latest diesel models produce, on average, six times more nitrogen oxide (NOx) in real-world tests compared to lab tests.

The diesel supplement for company car tax aims to encourage manufacturers to bring forward next-generation clean diesels sooner. Cars which meet the Real Driving Emissions Step 2 standard are not liable to pay the supplement.

Each year, 350,000 company car drivers replace their vehicle. This means that, within a few years, most affected drivers will have the opportunity to choose cleaner models.