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Central Government fleets are likely to come under even greater pressure to reduce costs following a report by the Public Accounts Committee.
The procurement report praised initial cost-cutting, which in the first year of the coalition Government saw savings of 2.3%, but adds that further cuts will be difficult to meet because most departments can't link costs to outputs.
The report's conclusion stated: "The challenge set by the Spending Review that is facing most departments, of reducing spending by 19% over the next four years, will be difficult to meet.
"Furthermore, the need for cost reductions will continue into the next Spending Review period, extending the time over which savings will need to be found to at least eight years."
The department called for a "radical approach" to spending cuts.
Hitting out at departments, the report added: "Most departments cannot link costs to outputs, to identify the consequences of changes in spending. This lack of basic management information is a serious impediment to making sustainable cost reductions that minimise the impact on frontline services.
"An understanding of how spending relates to key outputs is a necessary prerequisite of good decision-making and is essential if departments are to understand the impact of changes in spending."
The committee said it expected departments to have management information in place within a year that enables them to link costs to key priority outputs, and to use that information to drive efficiency savings, where possible, before making cuts.
One central Government-linked agency has already put plans in place to cut its fleet.
The Government Car and Despatch Agency's business plan for 2012-13 reveals significant cuts that will lead to the demise of its 'agency' status and be absorbed into the Department for Transport.
The chauffeur side of the GCDA's operation has seen significant cutbacks since 2009 when the national press reported the numbers of ministers using the service.
The mail-delivery part of the agency has also seen a reduction in its business as most Government departments now use electronic communication.
In the business plan, chief executive Marian Duncan said: "It has been agreed by ministers and the DfT Executive Committee that when the current reform programme for GCDA has been completed, the size and functions of the residual organisation would not justify executive agency status.
"The benefits of GCDA remaining an executive agency will be outweighed by the associated costs, and the agency will be re-organised and become in operational team within DfT by the end of 2012."
Under the changes mail delivery will be outsourced to private contractors and a pool car service will be run under a reformed Government Car Service. Costs will also reduce under the new system, dropping from £1.9m for the vehicles and maintenance to £1.1m in 2012/13.
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