COMPANY CAR cutbacks are likely even though most firms think the economy is improving, it has been revealed.

Around 30% of fleet managers are worried their fleets will decrease in size, a survey by GE Capital's fleet services business found.

The poll also showed 57% of fleet managers believe the UK economy will improve slightly at the start of 2011, while 4% think it will improve significantly this year. Just 22% reckoned the economy would deteriorate.

Almost 90% of fleet managers think that running costs will be the most significant factor affecting their decisions over the next 12 months.

Also, 70% reckon that driver and corporate taxation will be a major issue over the next year.

GE Capital's UK fleet commercial leader Gary Kileen said: "While it is encouraging to see that fleet managers anticipate the UK economy to strengthen this year, it is very telling that they do not consider that their own fleets will grow as a result of the improved economy.

"It is understandable that many of these managers are prioritising cost efficiency savings on the back of the recession, but it is interesting that the economic recovery is not linked to an increase in fleet size as businesses look to longer-term growth."