The BVRLA has attacked Chancellor, George Osborne, on his decision not to remove the 3% diesel supplement – which was set to be scrapped – next year.

“We’re disappointed with the Chancellor’s decision to defer the removal of the 3% diesel supplement on benefit in kind tax bands,” BVRLA chief executive Gerry Keaney said.

“This move will penalise company car drivers for decisions they have already made, based on the Chancellor’s 2012 announcement that the supplement would be lifted in 2016.”

“What is especially frustrating is that many of these motorists are being penalised for driving some of the latest, safest, most fuel-efficient vehicles on UK roads,” he added.

Meanwhile, the Department for Transport’s budget is set to drop by 37% compared with the current figure, which has caused the rental body to raise concerns that the costs could be passed onto fleet operators.

“What will the DfT have to stop doing to achieve these savings?” Keaney asked. “While we welcome the announcement that companies will benefit from more efficient digital systems, the Government must not compromise on the quality or delivery of these services to save money.”