Fleet News

Budget may affect fleets

SPECULATION is mounting that the long-awaited first Budget by the new Labour Government will see increases in fuel duties and possible company car taxes. The mini-Budget by the new Labour Government will be held on Wednesday, July 2 - the first time for more than 20 years that Budget Day has not been on a Tuesday. The change has been forced on the Treasury by a heavy schedule of international meetings.

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%.

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