Last years’ Budget announcement was nicknamed the “coronavirus Budget” but, for the fleet industry, there were a number of changes that provided certainty for fleets. The 2020 Budget saw commentary on WLTP, BIK, clarification on C02 emissions figures and capital allowance on business cars amongst others. Unsurprisingly though, yesterday’s Budget was in many ways what we had expected for its predecessor and is, in the main, a “Road to Recovery” Budget, the focus being the continued battle against Covid and how to support the personal and economical fall out from it.
Whilst the tax tables provided in 2020’s Budget finally provided clarity up to 2024/25, giving us the ability to provide employee and employer whole-life cost modelling for a full fleet cycle and enabling informed decisions, the government must continue to provide this clarity moving forward and the hope is, that this will be provided in Autumn or next Spring at the latest.
With areas from the extension of the Furlough scheme until September, through to Recovery Loan Schemes and a whole suite of “investment-led recovery schemes”, the Budget was packed with changes seemingly designed to support businesses across the board in one form or another. In terms of the Industry relevant changes, however, the announcements are although minimal, also quite positive for fleets. We see the 10 year long, freeze on fuel duty stay in place, as the Chancellor stated that a cost-of-living rise such as this was not a suitable option, news positively received across the industry. Additionally, we see Leeds become the home of a brand-new Infrastructure Investment Bank, the hope here is that it will provide significant investments that will speed along the uptake of electric vehicles as companies use funding to strengthen their EV infrastructures and Green initiatives.
With an underlying message of a continued commitment to the Road to Zero and no mention of company car tax in this announcement, there is some level of stability for the fleet industry here. Perhaps there will be more to come in the Autumn?
If the Spring 2021 Budget has got you thinking about how you can increase your fleet efficiencies, or you would like to find out more about how you can help your fleet along in the Road to Zero, please do not hesitate to email email@example.com or phone 0113 391 1791.