David Knight, managing director of PHH, said that after the election the fleet industry could expect to see increases in direct taxation such as company car tax, and the introduction of a raft of new indirect taxes, including charges to enter urban areas and motorway tolls. And he warned that such measures would not only hit company car drivers and the car market, but would have a knock-on effect on the whole of British industry.

He said: 'The motor industry is vitally important to this country's economy and changes like these will have an enormous impact on the car market. We cannot afford the kind of damage that could do to the economy and we urge the government - whichever party leads it - to think before acting.'