Extra low tax rates, such as just 5% for plug-in hybrid car, could be now be enough incentive for some SME fleet operators to make the switch to ULEVs.

This sea change will also be mirrored in the public transport sector with the government also announcing a further three funds totalling £85M to support ultra-low emission taxis, buses and cities plus up to £50M between 2017-18 and 2019-20 to promote manufacturing of ultra-low emission vehicles in the UK, based on a government contribution of £25M hoping to match funding from industry.

London gets a special boost with an additional £10M between 2017-18 and 2019-20 to increase ULEVs in support of the Capital’s ambition to introduce an Ultra-Low Emission Zone by 2025.

Commenting on the ULEV announcement, David Raistrick, UK head of automotive for Deloitte, said: “Investments in the infrastructure for plug-in vehicles may lead to an increase in sales of electric vehicles in the UK. However, large scale take up of the electric option is more dependent on improvements in operating range and the price of these vehicles being more closely aligned with customer price expectations.”

Richard Schooling, CEO, Alphabet told Business Car Manager

“Overall, this was a forward-looking package of measures as far as future business mobility strategies are concerned.

“The statement showed that the Government appreciates the need for broad-based investment in travel and transport infrastructure. Electric vehicle R&D and manufacturing should get a boost from the Northern Powerhouse initiative.

“And the £100 million-plus of funding outlined for ultra-low emission vehicles, new vehicle technologies and charging infrastructure signals the Government’s determination to lay the foundation for sustainable travel in the long term.

“It is also good to see autonomous vehicles included in the Chancellor’s thinking as perfecting the technology will take provision of on-demand business mobility to an exciting new level .”