The move means that businesses will be able to gain access to a 20% discount off the upfront cost worth up to £8,000.

In addition to lower running costs, the scheme also allows businesses that purchase the vans to take advantage of a range of tax incentives, including zero vehicle excise duty and no congestion charges in London.

Launched in 2012, the initiative has been used to help fund over 1,250 vans.

Transport Minister Baroness Kramer said: “Ultra-low emission vans are cheaper to run and with a variety of models now eligible for the grant, there has never been a better time for business to take advantage and start saving money. The government is supporting UK companies that are leading the way on cleaner and greener transport.”