On behalf of the group, Stephen Joseph had written to Chancellor Gordon Brown on issues related to the pre- Budget report.

It was suggested rail fuel should be separated from red diesel fuel so that increases in duty did not impact on rail costs and that incentives needed to help the industry to switch to low sulphur diesel should be introduced. The Treasury is now looking at rail fuel duty and talking to the industry.

Aviation issues were discussed and the difficulties of imposing taxation without European Union and international agreement were significant. VAT on air fares, for example, would be difficult to apply since not all flights were over UK air space.

Air passenger duty is the only measure presently available but Gordon Brown froze this in his last Budget. Meanwhile, Britain has been urged to put pressure on the EU to look at VAT on air fares.

It was also pointed out that because aviation is zero-rated rather than exempt, the industry is able to reclaim VAT on purchases which now amounts to £1.8billion per year of tax lost.

There is now hard evidence that a majority of public opinion is in favour of restrictions on air travel and new research indicates a passenger travelling by air is responsible for up to 11 times more carbon dioxide emissions than those travelling by rail.

Tax allowances of 40p per mile for company car use is now thought to be fuelling extra car use.

The sale of cars has slowed but the sale of light vans has sharply escalated. This is thought to be related to tax advantages.

Evidence is emerging that internet shopping is generating traffic because deliveries are being made over long distances rather than from local shops and businesses.