The chancellor George Osborne has announced in his March Budget that the Van Benefit Charge (VBC) will increase with the Retail Price Index (RPI) from April 2017.

The RPI, which measures inflation, stood at 1.3% in January 2016.

On 6 April 2015 the VBC was set at £3,150 and will increase to £3170 from 6 April 2016.

The Van Fuel Benefit Charge will rise from £594 to to £598 for 2016/17 on 6 April and, like the VBC, will rise further by the rate of inflation from 6 April 2017.

Osborne also said the Government will extend VBC support for zero-emission vans, meaning that from 6 April  2016 the charge will be 20% of the main rate in 2016/17 and 2017/18, and will then increase “on a tapered basis” up to 2022.

“The government will review the impact of this incentive at Budget 2018 together with enhanced capital allowances for zero emission vans,” the chancellor said.