Extending Full Expensing could unlock £1bn for commercial vehicles

BVRLA response to Spring Budget. The BVRLA has welcomed the extension of full expensing to rental and leasing, but warned that the government has missed a timely opportunity to support the transition to cleaner, greener road transport. The landmark shift in Government tax policy is poised to unlock up to £1bn worth of additional investment in commercial vehicles.

BVRLA Chief Executive, Gerry Keaney, said: “Today’s commitment to extend full expensing to the rental and leasing sectors is a monumental step forward to rectify an historic injustice. The BVRLA has been an active voice in achieving this change and welcomes the opportunity to engage further in delivering this long overdue alignment in tax policy.” 

Today’s Spring Budget, however, contained no updates on the key levers that are integral to enabling the switch to zero-emission vehicles in line with government targets. 

“At a critical time for the transition to zero-emission vehicles, no news is bad news. Today we heard nothing on charging, VED, Benefit in Kind, VAT on public charging, grants for electric vans, or a consumer education campaign. The Chancellor is leaving our sector in limbo. 

“The Government needs to be braver in unlocking the billions of pounds in zero emission investments required across the whole road transport sector, from fleets, small businesses and private motorists."