BVRLA Chief Executive comments: Tomorrow we’ll finally hear what is in the Autumn Budget, falling later in the year than any previous editions. For many, the wait has been painful, although some have fears that its content will pack an even harder punch.
As I wrote last week, the Government is playing a high-stakes game of fiscal poker and must lay some kind of hand. Ahead of seeing the cards on the table, I wanted to remind you where the BVRLA has been active on your behalf and what we have been pushing onto – and up – the agendas of Treasury and the Department for Transport.
Motoring taxes are the cornerstone of where the Budget could include changes that impact our sector. Vehicle running costs – be them for electric, petrol, or diesel vehicles – are central to a fleet operator’s books. Fuel Duty, ECOS, VED and salary sacrifice rates all come into play. All have been in the news in recent weeks.
For fuel duty and any associated charges for electric vehicles, we have been consistent in calling for a long-term, considered approach built on fairness and reality (see more here).
While rumours about such road pricing, if true, would potentially introduce a new model, we have also presented the case for Treasury to update to existing measures.
For example, the current £40,000 threshold at which the Expensive Car Supplement (ECS) is applied is not proportionate to the current EV parc. In some cases, the same vehicle can apply for the Electric Car Grant – designed to encourage adoption of more affordable vehicles – and the ECS at the same time. We have called for the threshold to be raised for EVs to avoid eroding the cost benefits that come with switching.
Another place where the transition to EVs can be supported in a fair way is in the used market. This year we have seen exceptional growth in used EV salary sacrifice demand, from a virtually standing start. More drivers, including those on lower incomes, would be able to go electric for the first time if the Benefit in Kind regime was adapted for used vehicles.
Beyond core motoring taxes, we have continued our call for the Chancellor to extend full expensing to vehicle rental and leasing. Doing so has the potential to unlock investment up to £1bn.
These are some of the areas we will be paying close attention to tomorrow. They only scratch the surface of our engagements with key departments, and representations on behalf of members.
As ever, we’ve been making strong, evidence-based cases to the Treasury, ensuring that they appreciate what is really happening across the fleet and mobility services sector and fully understand the potential implications of their actions.
Tomorrow, we will see what the Chancellor has decided to do, and if she has any aces hidden up her sleeve.
Find out more about our plans to keep you informed following the Budget.
For more details on our engagements in this space, contact me ([email protected]) or the team directly ([email protected])
