Fleet News

RAC tells Chancellor: Don't put 750,000 industry jobs on the line

THE RAC has warned Chancellor Gordon Brown not to jeopardise the 750,000 jobs which depend on the motor industry by imposing punitive new taxes on company cars. The motoring organisation claims the current tax system fairly reflects the benefit which a driver receives from his company car, but cautions that the margin between fair and penal taxes is very small.

It believes that if the tax burden increases many drivers will decide to leave company car schemes and will buy cheaper, older cars themselves, leading to a potential collapse in new car sales. John Hutson, RAC fleet spokesman, said: 'Company cars make up only 8% of cars on the road, and are among the newest and most environmentally advanced in the vehicle parc, yet they are often accused of causing most congestion and pollution problems.

'Yet company cars are a vital means for many businesses to deliver services and create wealth for the UK economy. They are the lifeblood of motor industry sales and the second-hand car market.' He added that any change to company car tax policy should discourage unnecessary car usage, not ownership; encourage and incentivise the use of environmentally-friendly vehicles; recognise the genuine importance to work of most company cars; and plough as much revenue as possible back into the transport network to ease congestion and improve the environment.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee