THE Government's commitment to widen the fuel duty differential between conventional fuels and 'clean' fuels in forthcoming Budgets will kick-start the alternative fuel vehicle revolution, it was claimed this week. And fleets, which are already in the vanguard of running compressed natural gas, liquefied petroleum gas and electric vehicles, are set to lead the way as the cost of petrol and ordinary diesel continue to spiral.

While, the white paper recognised the importance of company cars to the wellbeing of British businesses and the role they play in 'cleaning up' the second-hand market, the document underlined that in encouraging the widespread adoption of alternative fuels other, already announced measures, were equally important.

The white paper says: 'Company policy on the purchase and use of company car fleets is important for the environment. Company cars are generally much newer and better maintained than the average private car and therefore less polluting per unit of fuel consumed.'

Under the heading 'making it happen' the paper reiterated the March Budget commitments of Chancellor of the Exchequer Gordon Brown to:

  • Consider the case for replacing the existing company car tax discounts for clocking up business miles with a system of discounts based on driving fewer private miles in company cars.
  • Increase scale charges for employees provided with free fuel for private use by 20% a year over and above normal increases up to 2002/3 to discourage employers from providing free fuel.