The BVRLA Position Papers outline the association’s views, objectives and engagement activity relating to key policy areas affecting the industry.
The issue explained:
The government is pursuing an ambitious programme to reduce the nation’s carbon emissions and improve local air quality (such as the road to zero by 2040).
At the same time, it is keen to protect the UK economy during Brexit negotiations and recognises the motor industry as a key pillar of the economy.
Meanwhile, the long-term sustainability of the UK’s vehicle taxation system is under threat.
A simple, fair and well-signposted tax system will be key to achieving these ambitions and tackling these challenges.
As the owners and operators of over five million of the UK’s cleanest and newest vehicles, the BVRLA is well placed to position itself as a constructive partner in helping the government achieve its carbon reduction and air quality targets, without eroding its tax base.
- To take a joined up approach to ensure that taxation policy supports and does not compromise wider government air quality and business productivity objectives.
- To work constructively with the vehicle rental and leasing sector to set out a long-term roadmap with a managed transition to a zero-emission environment and a long-term sustainable vehicle taxation regime.
- To support UK businesses and individuals by providing affordable access to low-emission vehicles.
- To recognise the sector’s vital role in the UK automotive industry and its potential to support greater uptake in low emission vehicles when formulating tax policy.
- BVRLA members buy nearly 50% of new cars, vans and trucks, including around a third of all new plug-in vehicles. The fleet sector is the quickest route to decarbonising road transport.
- The Government needs to align its environmental and tax policies to drive electric vehicle (EV) uptake. The current VED surcharge of £320 should be removed for EVs, or the £40,000 threshold increased, to ensure our tax system encourages the right behaviour.
- The Government must develop a clear medium-to-long term plan for ensuring the modernisation of vehicle taxation and supporting a zero-emission environment. It should commission an independent review into modernising motoring tax and the development of a national road-user charging policy.
- In order to accelerate the adoption of ultra-low emission vehicles the Government should provide longer term incentives that stimulate demand, such as grants, use of bus lanes and free parking.
- The Government’s recent revision of Company Car Tax (CCT) rates is welcome, after years of persistent tax rises. Company cars are some of the greenest and cleanest vehicles on UK roads and the Government should now commit to a future tax regime that further supports this vital part of the fleet sector.
- BVRLA continues to engage with members and Treasury officials to influence the Comprehensive Spending Review
- Road to Zero Report Card released in June reviewed progress against government Road to Zero Strategy targets in core areas such as tax benefits
- BVRLA Summer Parliamentary Reception focused on support required to transition to zero emission vehicles, including a request for greater clarity of future tax rates for EVs
- Attended the National Grid EV roundtable to discuss taxation
- Contributed views on taxation to the Commission for Travel Demand evidence session