Budget 2011: LeasePlan calls on the Chancellor to provide long-term clarity

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At the same time, the firm has warned that stealth taxes could damage business mobility and jeopardise the nascent success of salary sacrifice schemes.

David Brennan, managing director, LeasePlan UK, said: 'It is vital to the health of the British economy that the Government focuses on aiding rather than obstructing business mobility. The Chancellor should do everything he can to keep the economy moving.

'At the moment, Benefit in Kind tax changes have only been confirmed until 2012/13 for the vast majority of vehicles and this creates a climate of uncertainty for fleet managers. They need certainty from the tax regime to allow them to take long-term planning decisions.

'Soaring fuel prices are already placing a severe strain on businesses and adding significantly to costs. At this time, there can be no new hidden stealth taxes which would add to the cost of mobility. This includes localised parking taxes, tolls and the like.'

He added: 'LeasePlan calls on the Chancellor not to introduce taxation measures that would penalise company vehicles. Business travel is a necessity, not a luxury and in the vast majority of cases these vehicles are essential business tools, not perks.

'We’re seeing positive signs that salary sacrifice is encouraging more employees to drive safer and greener vehicles and this trend could be jeopardised if the tax regime is changed.'

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