BVRLA Chief Executive Toby Poston comments: Last week's Budget was the busiest for road users in recent memory. In assessing the impact on our sector it’s important to consider both what has changed and what hasn’t.
Access the full write up and key details on the BVRLA website now.
Sprinkled throughout were some notable wins for the BVRLA and the sector overall. Car salary sacrifice was untouched, the Expensive Car Supplement threshold for EVs was raised, common sense prevailed with a simple approach confirmed for PHEV emissions testing change mitigation, and we finally saw a major breakthrough with leasing being added to the new 40% capital allowances regime.
There is a sting in the tail of that last one, the writing-down allowance for the main pool will fall from 18% to 14%, which could offset the value of the 40% first-year allowance for longer leases.
Unfortunately, the government’s wilful neglect of the used EV market will go down as one of the biggest missteps in the entire road to zero transition. Rampant electric vehicle depreciation is costing billions of pounds and eroding confidence amongst potential EV adopters and those that have already taken the plunge. Until we fix this ‘leaky bucket’ a big portion of the billions of pounds being invested in new car grants, charging infrastructure and vehicle supply chains will be wasted. We must create some kind of balance between the new and used EV markets.
Compounding this issue, the introduction of a pay-per-mile charge for electric vehicles – titled eVED – has been confirmed for 2028. It is the wrong policy at the wrong time.
The BVRLA has long called for a considered, strategic introduction of a new road user charging regime. The proposed eVED will not provide this. In its current guise, it is damaging.
For the fleets, leasing companies and rental operators that have collectively invested billions in EV fleets, the measure adds more than a cost that eats into the TCO benefits of electric over petrol. It poses an administrative nightmare too.
We need members and their business customers to unite in making the Government aware of the damage the current scheme would inflict on our sector. The BVRLA remains in active conversation with key departments, but we need the weight of the sector’s voices behind us.
Members of Parliament, of all parties and seniorities, can support our case for pay-per-mile in its current form to be stopped. It should be replaced by considered, cross-sector collaboration, which is the only way to develop a new regime that delivers the funds the road network needs in a fair, sustainable way.
Please connect with your fleet customers and support them in writing to their MP as a matter of urgency. The BVRLA has developed an online tool that makes it quick and easy to send a letter to the relevant MP. It is pre-written but can be edited to add personal experiences if preferred.
The Budget is being debated in Parliament today and tomorrow, now is the time to make our voice heard to the MPs who will be steering that debate.
