FLEETS would be hit if the Government adopts new taxes and congestion-charging measures to beat the gridlock facing the British roads network advocated by the Institution of Civil Engineers. In a new report on strategic funding for Britain's transport network - 'Paying for transport', the Institution suggests higher taxes on parking for company car drivers and their employers as part of a raft of measures to discourage commuting into congested cities.

The report also recommends the use of smart cards to automatically charge vehicles using congested roads on a sliding scale in direct proportion to traffic volumes. The main thrust of the Institution's recommendations is the implementation of a fully integrated transport policy funded by matching the transport charges to users more closely with the real life costs.

Transport taxation would be split into general tax revenue and a charge element for the use of the transport infrastructure which would be ring-fenced and revenues spent solely on transport projects. Congestion charging takes this process a step further by charging users extra for using roads during peak hours of demand and reducing the number of unnecessary journeys. The report also suggests awarding 'air miles' for free bus or train journeys to motorists paying high congestion charges.