The new Labour government is currently finalising the details of its first major fiscal event since winning the election this summer. Chancellor Rachel Reeves' delivers the Budget next week (30 October) and she has forewarned the public that this will be a 'painful' one.
Against the backdrop of a challenging economic climate, commentators are anticipating targeted tax rises and cuts to certain services. Even with that challenging backdrop, the Budget will be expected to include announcements and commitments that underpin the government’s ambitions regarding growth and sustainability.
The BVRLA has submitted a series of asks for the Chancellor and HM Treasury to consider:
- Growth agenda – expand full expensing to leasing and rental
- Stabilise the EV market – temporary emergency measures targeted at the used EV market:
- Myth-busting information campaign
- Reduce VAT on sale of used EVs and targeted grants for used EV
- 0% BiK used BEV salary sacrifice cars
- Measures needed to meet ZEV Mandate/phase out targets
- Low Benefit-in-Kind (BIK) rate commitment and clarity
- Rebalance Expensive Car Supplement
- Expand salary sacrifice to the civil service
- Support for electrification of LCVs (light commercial vehicles)
- Expand Plug-in Van Grant
- New grant for used vans
- Improve charging for LCVs
- Future priorities for discussion now
- Road pricing
- Steady-state BiK.
These asks were developed with extensive input from BVRLA members and have formed the basis of the association’s interactions with HM Treasury and other government departments over recent months.
Members can use this handy tool to write to their MP, to help gather support for the BVRLA’s asks and used EV campaign.
