Fleet News

'Greening' travel package confirmed

A PACKAGE of measures to encourage the use of public transport and to 'green' Britain's travel to work - including an increase in the tax-free rate for car sharing on business trips - were confirmed in Budget 2001. The combination of measures were originally announced in November's Pre-Budget Report with the only change being an increase from 2p a mile to 5p a mile per passenger in the tax-free passenger rate to encourage car sharing on business trips in private cars from April 6, 2002.

In addition, Chancellor of the Exchequer Gordon Brown said the Government would also be working with taxi companies, local authorities and other bodies to explore ways of encouraging the use of less-polluting taxis in major cities. It will consult on whether the tax treatment of employer-subsidised contract buses should be aligned with that for employer provided works buses in allowing employees free or reduced cost travel to work.

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