The government has opened a consultation around the King Review of low-carbon cars, which is looking at how road transport emissions can be cut over the next 25 years.
The consultation period is set to close on 20 August, following which an announcement on the legislative change around low-carbon cars and how fleets will be affected is expected in the pre-budget report at the end of the year.
Whatever the outcome, it is highly likely that employers will be expected to put more of their drivers into green, structured company car schemes, which are more tax-efficient, although it is not yet clear if this will spell the end for cash allowances.
David Rawlings, senior manager, automotive at consultancy firm Deloitte, said: “Employers will need to work with their drivers to get them in the right car, and they will want to keep choice, but the smart ones will be able to encourage drivers into green vehicles to save both the employer and the employee cash.”
He added that one possible outcome would be to set a limit of CO2 emissions for all company fleets, though this may not be a particularly fair piece of legislation. “It would be unfair to put a CO2 cap on all employers. One firm may have one thousand cars that never leave London, whereas another has 300 cars driving across the UK,” he said.