NATIONAL newspaper claims that a future Labour government would launch a tax blitz against company cars have been dismissed by shadow transport spokeswoman Clare Short, who said the importance of the company car to UK plc would be recognised within a co-ordinated transport strategy under a future Labour Government.

In a candid speech at the AM100 dinner held in conjunction with the annual National Franchised Dealer Association Business Show, the MP for Birmingham Ladywood also gave the audience a preview of Labour's long-awaited transport policy document.

'The structure of company car taxation should be reviewed to encourage more fuel-efficient and environmentally sustainable car use. We fully recognise however, that for many jobs the provision of a car or other motor vehicle is essential,' said Short.

While the fine detail of company car taxation changes have to be worked out - a specialist advisory group to look at the best way is to be set up - Fleet News understands it could mean the introduction of more mileage tax breaks within the present list-price-based system to stop company car drivers clocking up so-called 'wasted' miles in pursuit of lower tax bills. The policy document endorses the view that the current benefit-in-kind system encourages some company car drivers to clock up extra miles.