THE Liberal Democrats will hit fleets with a double-barrelled tax bombshell if they form the next Government. Larger capacity engines and company car drivers will be targeted in tax initiatives to discourage use of larger cars and target 'hidden' benefits of the company car.

Transport spokesman David Chidgey said 'We recognise that for some jobs the company car is essential but we would encourage motorists to drive smaller cars.

Taxation levels attract considerable benefits to company car users, which we consider unjust. Insurance, road tax and maintenance all add to the non-taxable benefit of the company car, which is unfair to other tax-payers. This is not a punitive measure, but it is to make the system fairer because it is open to abuse. We would invest the revenue in public transport.'