The big surprise for fleets in last week’s Budget was the extension to benefit-in-kind tables through to 2030–31, with only a one percentage point increase for electric cars, said Paul Hollick, chair at the Association of Fleet Professionals.
He added, “This is good news, providing a high degree of certainty over a typical four-year cycle and beyond. The tax increase is as minimal as we could have hoped, maintaining the low BIK incentive for drivers for the next five years, something we believe is important to ongoing fleet electrification.
“There were some other positive measures, though nowhere near as eye-catching. The fuel duty freeze is welcome but had been well signposted and offers only short-term relief, while increases in grey fleet casual mileage allowances will suit some drivers but could encourage the use of older, higher-emission cars – an outcome fleets will be keen to avoid. We’re also intrigued by the possibility of cheaper local, lower power electric vehicle charging, although details are so far limited.”
Key areas where members want more information and action from the government – the ZEV Mandate and eVED – were largely outside the scope of the Chancellor. However, some previously known details about eVED were included in the Budget document concurrent with this week’s confirmation that the UK will adopt Euro 7 emission standards, which is likely to affect fleets still acquiring PHEVs.
Especially, the AFP wants a greater commitment from the government to engage with fleet operators to better understand the impacts and implications of the eVED tax proposals and resolve a number of key outstanding issues.
“The overall tone of the Budget was about the Burnham government setting out its priorities to support people while the cost of living continues to rise. This is a laudable aim but there is an argument more attention could have been given to the needs of business. Many fleets find themselves under growing financial pressure and more help would’ve been gladly welcomed,” he concluded.
