ANY taxation imposed by the Government on company cars is a tax on businesses, a fleet industry forum has warned. In the latest report from the forum, established by PHH Vehicle Management Services, its members argue that measures being introduced to encourage businesses, although welcomed, are being undermined by an attack on vehicles - the lifeblood of many UK businesses.

The forum - whose members included David Knight, non-executive director of Cendant PHH; Bryan Gale, of PHH Vehicle Management Services; Brian Smith, managing director of Continental Tyre Group; Alison Chapman, partner Deloitte & Touche; Edward McCabe, managing director Hartwell; Roger Glenwright, group fleet manager Siemens Group Services, and Alan Fenwick, head of purchasing Thomas Cook Group - examined a number of issues including company car tax, fuel levies, road tolling, congestion and pollution.

The forum's recommendations include: Company car drivers should be taxed on the basis of private mileage not business mileage; future increases in fuel above the rate of inflation should be reclaimable by business; park and ride policies should be encouraged and implemented across the country; a truck-only lane should be introduced on motorways and dual carriageways at certain times; and drivers being retested every 10 years.

The report adds: 'There is a need to reduce the amount of congestion and pollution and the Forum welcomes any measures which are introduced to help do this. Nevertheless, taxation on the genuine business vehicle user does little to combat these problems. A tax on business vehicles is a tax on business.'