FLEET Cost Management is sheltering its customers from the daily rental industry's 95p per day levy by promising to absorb the charge until the end of the year. Hire companies are imposing the charge to cover the new £25 vehicle registration fee and increases in road fund licence, unexpected costs which also apply to fleets, according to FCM.

John Britcliffe, FCM's managing director, acknowledged that daily rental firms were facing a tough time at the moment, but warned that any supplementary charges on top of the 95p per day levy would have to be very clearly explained. 'I understand the argument for the 95p figure, which is based on replacing hire cars three times during the year, but at the same time, short term hire companies are talking about extending the operational life of their vehicles,' he said.

'I also think the inclusion of the £15 rise in road tax in the figures is slightly dubious as this is something that could have been predicted and budgeted for. If, as has been mooted, short term hire companies introduce further levies to address specific costs, then they will need to make sure that they explain these properly to customers.'