With all car motoring taxes now linked to vehicle carbon dioxide emissions including company car benefit-in-kind tax, Vehicle Excise Duty and capital allowances, it is straight-forward for the Government to tighten all thresholds while keeping the tax structure unchanged.

Jenner said: “We know that the Government is keen to pursue a carbon-cutting agenda. However, due to a lack of face-to-face dialogue with the new Government during its first six months in office we are in uncharted territory.

“Fleet decision-makers will play their part in helping the Government achieve its objectives. But, long-term planning is essential for business stability. A significant tightening of rates, for example cutting the capital allowance limit from 160 g/km to 140 g/km without warning, could cause major problems."

Meanwhile, fears of a double-dip recession continue to stalk the economy prompting concerns as to whether bank funding will be available to some businesses and contract hire and leasing companies.

Many leasing companies, particularly smaller independent organisations, have, in some cases, struggled to raise funds in the wake of the credit crunch-inspired recession.

Jenner said: “While some fleets favour sole supply arrangements to maximise leverage, cut costs and drive out duplications, other organisations continue to have in place dual or triple supplier arrangements to spread the risk.

“Fleets that rely on a sole supply arrangement have no options available if their vehicle leasing supplier finds that their credit terms tighten significantly. This could then impact on vehicle operations. By taking a safety first approach and introducing more suppliers any risk is potentially reduced. The multi-supplier approach is one we could see more of in 2011.”

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