THE Government must remove any tax which disincentivises employers from introducing green commuter schemes for their staff, according to the Environmental Audit Committee. Its call came less than a month after news emerged that Boots faced a back-dated tax bill of £500,000 to cover the benefit-in-kind liability of staff who have taken advantage of corporately-sponsored buses to get to work, rather than use their own cars.

'We urge the Government to address, in the forthcoming Budget, the tax disincentive to adopting green transport plans,' said the EAC. 'Currently the Inland Revenue taxes employees who benefit from their companies' green transport plan measures which help them to travel to work without their cars.' The EAC said the Government had indicated in its integrated transport strategy that it would address the issue, and expressed concern that pre-budget reports made no mention of any progress.

The committee had received an assurance that companies were willing to play their part in reducing car travel, in a submission from London First, a lobby group of leading businesses, which aims to improve the capital's living environment. 'But they will be deterred from doing so if this results in an additional tax burden for employees and greater administrative costs for the employer,' said London First.