This week’s round-up of fleet news focuses on industry response to UK Budget 2014 and driver indifference to electric vehicles.
Budget 2014: Fuel duty and tax plans welcomed by fleet market
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The UK fleet market has welcomed government plans on taxation and fuel duty but the industry has said the Chancellor "missed a major opportunity" to support low-emissions vehicles in his 2014 Budget.
Acfo, the body representing UK fleet decision-makers, welcomed George Osborne’s decision to announce benefit-in-kind tax rates up until April 2019. The body said it had lobbied the government to make rates known for entire operating cycle of a vehicle as fleet replacement cycles have lengthened.
Damian James, Acfo chairman, said: "It means that company car drivers can make their vehicle selection in clear knowledge of what their benefit-in-kind tax liability will be for the lifetime of the car.
"We hope that this five-year benefit-in-kind announcement cycle is retained in future Budgets.
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By GlobalDataIndustry leaders also welcomed the freeze on fuel duty with David Brennan, managing director of LeasePlan UK, saying the decision was "pleasing for motorists" and demonstrated the government’s commitment to easing the cost of motoring.
However, both Acfo and the British Vehicle Rental and Leasing Association (BVRLA) said the freeze did not go far enough. Gerry Keaney, BVRLA chief executive, said: "The road haulage industry needs a cut in fuel duty, not a freeze. The Chancellor likes to talk about tax cuts that also deliver economic growth and therefore greater tax revenues in the long run. This is a classic example that he has chosen to ignore."
Keaney also criticised the lack of incentives for electric vehicles in the announced company car tax bands and described it as a missed opportunity.
"The Chancellor talked about extending support for low emission vehicles, but there is precious little evidence for that in this Budget.
"The electric vehicle market is still in the doldrums, and the current incentive regime isn’t working. The new company car tax rates announced today will do nothing to encourage fleets and their drivers to take a risk on this costly and uncertain technology.
"A business driver thinking about choosing an expensive zero-emission vehicle this year will see their company car tax rate rise from nothing to 13% within four years. Their cost of motoring will rise much faster than someone choosing a gas guzzler."
Elsewhere in the Budget, LeasePlan’s Brennan applauded the Government’s pledge to support manufacturing and the £200m promised to upgrade the UK’s "crumbling" road infrastructure.
Only 16% would consider business EV – Leasedrive
Only 16% of drivers would consider purchasing an electric vehicle (EV) as their next company car, according to survey of 543 drivers by UK vehicle fleet manager Leasedrive Group.
Respondents cited lack of range (35%), knowledge (13%), and adequate re-charging infrastructure (12%), as the most strongly determining factors.
Leasedrive Group’s Roddy Graham, said government should take the lead in improving customers’ knowledge around EVs. He said: "It has been left to vehicle manufacturers and interested third parties to seize the initiative in promoting the benefits of EVs."
Addressing the issue of insufficient charging infrastructure, he added: "For now, hybrids and range extenders offer the most practical solution until battery technology improves substantially."
