Hosking commented: ‘While we welcome the necessary clarity that the announcement regarding the 2% increase on company car tax in 2017/18 and 2018/19 brings, we also think that the Chancellor missed a huge opportunity to encourage uptake of electric vehicles which was hugely disappointing. 

‘The confirmation of the new 5% BIK tax rate for EVs, rising to 13% in four years, will do nothing to encourage or stimulate the fledgling EV market where uptake is currently fragile at best. 

‘It was also disappointing that leasing companies were not given the opportunity to claim first year writing down allowances on ultra-low emission vehicles as had been hoped, and that there was no guidance on advisory fuel rates for EVs – and I say this as one who has just taken delivery of their first BMW i3.’