Fleet News

Pre-Budget Report 08: Initial feedback - LeasePlan

Key facts from the pre-Budget report.

David Brennan, managing director of LeasePlan UK said:

Fuel duty

“Fuel duties continue to be an issue of some debate.

"The chancellor framed the rises in his pre-Budget report in the context of VAT cuts, but the supporting documents reveal the extent of the duty rises.

"They’re set to go up by 2p on December 1 and then by nearly another 2p in April next year.

“These rises go beyond offsetting the VAT cut.

"What’s more, the VAT cut has been announced as temporary only, whilst fuel duty seems to be permanently rising.

“Yes, prices at the pumps have stabilised somewhat in recent months, but fuel remains a significant expenditure for all fleets.

"At the very least, we’d like to ensure that if VAT returns to 17.5% at the end of 2009, then fuel duties would drop accordingly.” 

Vehicle Excise Duty

“The changes to the VED changes announced in March will be a welcome piece of news for all fleets.

"It should keep both sides of the discussion happy – it continues to ensure the VED system will encourage uptake of more efficient vehicles whilst not penalising organisations too harshly given the current economic climate.

"It seems a sensible solution to an issue that I’m sure will continue to develop as the plan moves forward.”

Capital gains

“Many expected the pre-Budget report to deliver the details of the capital gains changes set to come live in April next year.

"Instead, the Chancellor has promised a technical note and draft legislation to be ‘publicised shortly.

“This will leave many fleet managers continuing to hold their breath.

"The change could easily impact on vehicles being bought now, depending on how it’s implemented.

"The most sensible course of action is to prepare for the changes now.

"To avoid any surprises, speak with your fleet suppliers and ensure your fleet policy is in line with the new system.”

ECO schemes and AMAPs

“Also buried away in the pre-Budget report this year was an announcement that the government isn’t going to change its treatment of ECO schemes and AMAP rates.

"On the whole, this is a good thing. Any increase in AMAP rates would simply encourage more people out of clean, safe, efficient company cars.

"ECO schemes have proved increasingly popular in recent years – they seem set to remain popular following this announcement.”

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