SAFETY-CONSCIOUS fleets addressing concerns over duty of care this year will help fuel a rise in the number of company cars supplied to UK businesses.

The prediction of an increase in company cars – particularly perk cars – comes after a decade of gradual decline, a study has found.

Carried out by GE Fleet Services, as part of its Company Car Trends quarterly report, the results showed that almost all of the 800 respondents (99%) offered their employees a company vehicle when it was a vital requirement of their job but that 61% also offered a company car to staff even though it was not vital to their work.

More than 60% of respondents expect to continue offering non-essential drivers a perk car in the next 12 months, representing an increase of almost 20% compared to the same period last year.

Bosses at GE Fleet Services suggest the greater product choice offered to fleets by leasing companies is also fuelling the growth.

Managing director Rich Green said: ‘The GE Company Car Trends report confirms the migration back towards company cars and their continued importance as a vital business travel tool. The significant increase in the availability of company cars, especially as perk cars, demonstrates that changes to benefit-in-kind taxation and the increasing flexibility of leasing products are now having a real impact on staff recruitment and retention policies.’

The survey’s findings come weeks after Fleet NewsNet reported that an increasing number of fleets will spend the year attempting to get drivers who have opted out back into traditional company car schemes.

UK fleet managers responsible for running a total of more than 50,000 vehicles were questioned about their concerns by Lex Vehicle Leasing and put ‘getting cash drivers back into company cars’ into the top 10 for the first time in the survey’s four-year history (Fleet NewsNet, February 1).