Alistair Darling’s first budget could be an important one for the business car market, with green taxes on new cars, fuel duty announcements and changes to capital allowances for business cars all among the headline announcements.

Any new model over 160g/km will be hit by a £950 first year’s Vehicle Excise Duty from 2010, while at the same time cars under 130g/km will be VED free for the first year.

The 2p per litre fuel duty rise due on 1 April has been postponed for six months and is now scheduled to take effect in October, and there is talk of a further 0.5ppl rise in 2010.

Road pricing is also back on the agenda as a “long-term” solution to congestion, with funding set aside and tenders invited.

Biofuel was also mentioned, with the Chancellor looking to incentivise “only the most sustainable biofuels” by removing the fuel duty differential that makes biofuel viable.

Changes to capital allowance for business cars are also coming, with the intention of pushing fleets towards greener vehicles.

And after months of speculation and Treasury investigation, the Approved Mileage Allowance Payments companies pay to drivers for fuel used on work business will remain at the current level.

For more detail on all these stories, go to www.businesscar.co.uk/budget2008.