Fleet News

Budget Briefing: Fleets are urged to launch 'ground-up zero-based review'

A THREE-point action plan was unveiled for fleet decision-makers at the Fleet News Budget Briefing.

Employers were told they should use the Budget announcement as the starting point for a 'ground-up zero-based review' of the whole fleet policy.

This review should be part of a regular evaluation of fleet strategy by decision-makers to ensure it caters for new challenges, such as the EU Fourth Insurance Directive, congestion charging, impending mobile phone legislation and health and safety issues.

Fleet Audits' managing director Stewart Whyte told delegates at the briefing that it was vital to have backing from Government in implementing this strategic approach.

He said: 'We are pushing for the understanding that running a fleet is a long-term prospect We don't want things to be changed all the time. We need to plan.

'Following the Budget announcement, fleets need to consider whether their cash-for-car schemes are still achieving their goal, which is to reduce costs to employers, keep drivers happy and provide safe, clean and flexible transport.'

He also said fleets needed to examine the benefit of providing employees with free fuel for private mileage and consider the effect of changes to benefit-in-kind taxation on car choice for drivers.

Speaking about the Budget, he added: 'Disappointingly, there was little support for alternative fuel. The Government seems silent on the longer-term future of the freeze on reduced road fuel duty of liquefied petroleum gas. This expires in March/April 2004, so where will the duty go then?' action plan

Action plan:

  • Review, revise and re-appraise your whole fuel management strategy
  • Review and re-appraise any cash-for-car/ECOP arrangements
  • Consider a ground-up zero–based review of the whole fleet policy
  • Fleet News Budget Briefing was sponsored by Arval PHH and AllStar.

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