The Autumn Statement Only Makes Conditions Worse for the UK’s Fleets
Posted by: electime 31st October 2024
In the wake of the Autumn Statement, Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, including the UK brand Allstar, reflects on the implications for the nation’s fleet operators. He said:
“We were expecting that there would be little relief for UK businesses from the Autumn Statement, yet the fuel duty rates have been frozen for another year, extending the 5p cut for 12 more months. This is welcome news for all road users but in particular those companies with fleets of vehicles. Potentially, each could have incurred thousands of pounds in extra costs had the rumoured ending of the fuel duty freeze thawed. At a time when the economy is recovering, but not fully recovered, this is critical.
“We were particularly excited to see that the budget stated support of electric vehicle (EV) adoption. The chancellor stated they would maintain existing incentives for EVs in company car tax from 2028 and increase the differential between fully electric and other vehicles in Vehicle Exercise Duty from April 2025. However, the statement failed to provide clarity on what exactly this will mean for electric vehicle drivers fiscally.
“With the 2035 cut-off for the sale of new EVs looming, it is critical that the statement provides clear guidance on what the roadmap looks like for the future of electric vehicles on the UK’s roads, both for individual motorists and the large fleets we work with.
“We have seen in other countries, notably New Zealand and the Netherlands, that momentum is important in the transition to EV, so incentives to invest are now critical. Switching to EVs would save huge amounts of money in fuel and road tax for everyone on the UK’s roads, so it is vital that the government supports drivers and fleets in the transition.
“Transport and logistics are at the heart of the country’s economy and when the companies that either enable or drive logistics are battered by increasing prices and have to reduce their services, everyone suffers. Lets hope that this statement marks a change in tide for drivers, electric vehicle adoption and fleets.”
