FEARS that the company car could be a cash-raising target in the spring Budget have been dampened by Prime Minister Tony Blair. Questioned about the likelihood of the Government increasing company car tax in the spring he said: 'I would not believe everything you read in the newspapers, but it is up to the Chancellor.'

Blair's comment came just a week after Transport Minister Gavin Strang said that while a shake-up in company car taxation was likely, the Government understood the importance of the company car. Asked about the future of the car under a Labour Government which wants to introduce an integrated transport policy, Blair said: 'I want to create a transport system where people have a choice. People want to use their cars and I use my car, but it is important to get the balance right. We have got to look at all the transport options and possibilities.'