Businesses that lease vehicles are being encouraged to choose ever more fuel-efficient vehicles as lower thresholds for capital allowances are being introduced.

The threshold for paying income tax at a higher rate will increase from £43,000 to £45,000 in 2017, with a plan for it to reach £50,000 by the end of the Parliament in 2020.

The Government has committed to review salary sacrifice schemes in view of increased take-up in recent years, and car schemes would not be protected.