Fleet News

Pre-Budget Report 08: Initial feedback - Masterlease

Peter Tatlock, managing director Masterlease, said:

“Although having broad implications for the fleet industry, the VAT change is to be welcomed in the round.

"The much-heralded 2.5% reduction, won’t have as great an impact upon businesses as it does for consumers.

"Users of contract hire will see an effective 1.25% reduction in costs due to the 50% VAT disallowance (finance element of contract hire payment), but it looks as though this will be partially offset by fuel duty increases.

The phased, and less dramatic, attack on ‘gas guzzlers’ through the VED system is welcome, although damage has already been done to consumer confidence and used car values.

"This easing into ‘greener’ cars choice is better news for fleet managers and their cash flow.

"We also welcome the acceleration of £3 billion capital spending, which will include motorway infrastructure investment, which will help to ease the UK’s crippling congestion problem."

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