Budget may affect fleets

The Labour Party's manifesto signalled a 'green agenda' and political commentators are already predicting that the cash-strapped Government will increase fuel duties and at least one national newspaper is predicting company car taxes could increase.

It is expected around £1 billion could be raised by fuel duty increases which are likely to follow recent Conservative Budgets of being 5% above inflation and further taxes on company cars which would be aimed at vehicles with large engines and low fuel economy and could encompass a review of vehicle excise duties. There is also speculation that the VAT rate could be increased from 17.5% to 20%.