Last week’s Budget was publicised beforehand as being a painful one, with difficult decisions needing to be made. Its contents demonstrated the challenging economic climate facing the nation, but did contain some green shoots around road transport decarbonisation.
BVRLA Chief Executive, Gerry Keaney, said: “This was a complex budget at a difficult time. The increase to employers’ national insurance will have a substantial impact on businesses and their customers. The full scale of its impact will only be seen in time.
“For our sector, the Chancellor has left many challenges unresolved. As penalties to stay in ICE vehicles ramp up in line with the ZEV mandate, more needs to be done. The barriers relating to the rental sector, charging infrastructure, consumer education and the used EV market, all need close attention.
“The Budget did bring some green shoots of positivity, suggesting that the government is taking the UK’s transition to cleaner, greener vehicles seriously. The confirmation that the fair EV company car tax regime will be continued at least to 2030 is a positive step, supporting a vital contributor to the transition and a bright spot of success up to now. Extending the Plug-in Van Grant provides the sector with a much-needed boost.”
Announcements specific to road transport included:
Vehicle Excise Duty: a sharp rise for petrol and diesel vehicles will add significant costs for a large part of the membership, but changes to VED are welcome for electric vehicles.
Electric vehicle uptake: The Chancellor provided some foresight around support to promote the uptake of electric vehicles. The extension of the Plug-in Van Grant and the publication of two more years of fair EV Benefit-in-Kind rates are big wins for the BVRLA’s campaigning efforts.
More work needs to be done though, especially in relation to Full Expensing not yet being extended to the rental and leasing sector, despite a commitment that this will continue to be explored. The association also needs to continue campaigning for the change in the Expensive Car Supplement threshold for electric vehicles.
Budget updates relevant to members: Autumn Budget 2024: what you need to know.
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