Van fleets could soon enjoy discounted Vehicle Excise Duty rates on their vehicles, as part of a Government initiative to incentivise cleaner light commercial vehicles.

The Treasury is planning head-to-head talks with fleet industry leaders and manufacturers on proposals to revolutionise the taxation of vans in a bid to clean up their emissions.

Chancellor of the Exchequer Gordon Brown used his pre-Budget statement to announce proposals to use Vehicle Excise Duty as one of several measures to encourage businesses to select cleaner vans. He wants to discuss the plans with industry.

Vans constitute 8% of the vehicle fleet, but the Government claims they produce a 'disproportionate' amount of local air pollutants.

The changes would build on changes to car VED, based on carbon dioxide emissions, which reward the use of cleaner and alternatively-fuelled cars.

A Government statement said: "The Government wants to encourage van manufacturers and users to develop and adopt new technologies with environmental benefits, including vans that meet the challenging new Euro-IV emissions standards ahead of 2007 mandatory date.

"The Government will discuss with industry and other stakeholders how best to achieve this objective, for example through VED, in advance of Budget 2002." (December 4, 2001)