Emma Howard Boyd, Head of Socially Responsible Investment at Jupiter, comments

"Today's Budget, together with the King Review of low-carbon cars, also published today, shows how the Government continues to put weight behind targeted environmental issues through selected fiscal measures, although the focus on voluntary action still remains.  Actual measures were less aggressive than we had been led to expect from the build up.

"The King Review, which makes recommendations for action to reduce emissions from transport, is of particular interest to us as green investors.  We would expect the range of policies announced by the Chancellor to support further development of new technologies which will help cut carbon emissions, as demand for cleaner cars gathers momentum among consumers (Professor King found that motorists could save 25% of their fuel costs by simply switching to the cleanest cars on offer).

"On a stock level, companies such as Ricardo, which develops engine technologies that minimise the environmental impact of vehicles, should benefit.  We would also expect to see bus and train companies do well as more people are encouraged to switch to public transport."

NOTE

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place London SW1X 7JJ. They are both subsidiaries of Jupiter Investment Management Group Limited and the group is collectively known as "Jupiter". The above commentary represents the views of the Fund Manager at the time of preparation and may be subject to change. They are not necessarily those of Jupiter and should not be interpreted as investment advice. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.