The British Vehicle Rental and Leasing Association have formerly submitted their requests to George Osborne and the House in anticipation of next week’s budget, hoping for a fairer, simpler deal on vehicle tax classifications with directions pointing to who qualifies for what more clearly signposted than the current set up.
The BVRLA, like the SMMT, do carry fair sway when it comes to commercial fleet. Of course there are domestic drivers that hire cars but the majority of its customers are trade. They are perhaps better suited than most to get a grasp of the atmosphere in the automotive sector, in particular the fleet hire market, than most other bodies in the UK. They realise that cost efficient motoring is not just about cheap van insurance, far from it.
Their table of requests is long and detailed; in this article we look to bring you a summary and the reasoning behind why they’re asking for what they are and what they hope the budget will realise in less than a week’s time.
CO2 considerations are not the only factor
No one can deny that company cars are a lot cleaner now than prior to emission levels being the governance for setting the tax rates. However, the recent announcement that levels to qualify for the cheapest capital allowances are reduced from 120g/km to 99g/km carbon output has not sat kindly with many car and van manufacturers who have been working to the prior milestone figure to attract commercial fleet business for some time.
Regardless of the fact that cleaner cars and vans generally attract cheaper van insurance quotes, there are other inequalities that the BVRLA would like to see addressed in Osborne’s speech on the 21st.
The vehicle hire sector can deliver, but…
At the beginning of the year, all commercial sectors set targets for the many different goals they were expected to achieve in the drive to pick the economy up off its knees. The vehicle hire sector likewise had its own milestones to reach. However, their statement suggests that it needs a ‘well-signposted tax regime’ if it is to achieve what it set out to.
The impression is that, although the government have one eye on clearing the red tape and bureaucracy, it is key that they maintain focus on what the goals actually are, and that is to create the opportunity at least to give the economy a foot-up by getting vehicle taxation proportionate and appropriate.
Fuel duty – the one everyone’s pumping Osborne for
Given the moved goalposts for manufacturing and the role that green emissions are still likely to play in setting tax bands, fuel efficiency is going to be key not only to getting the budget right but also helping businesses stay afloat.
August is fast approaching and the postponed increase in fuel duty from January, due to kick in this August, may be a bridge too far for some organisations.
The BVRLA have lobbied Osborne to consider scrapping the additional 3p per litre that was initially detailed for January, but postponed due to the economic climate until August. What no one predicted at that point was that we’d be seeing record fuel prices already. There is a very real fear that any rise extra on what we’re paying at the pump now, in the face of decreased personal wealth, may be the straw that breaks the camel’s back.
There’s never been more of a reason to get online now and secure a quote for the cheapest van insurance policy out there to suit your circumstances, before some of the predicted rises come in to the fray later in the year.