A new survey has found that a significant percentage of companies are considering making redundancies if the cost of fuel continues to increase.
The findings have major implications for fleets and leasing companies who, if the redundancies take place in large numbers, could see thousands of company vehicles returned to their suppliers early.
The YouGov survey of UK financial directors and chief financial officers, which was commissioned by Lex, found that over one third of respondents expect redundancies within their organisation if the price of fuel hits £2 a litre
Last month, the price of diesel – the fuel of choice for most fleets – rose by its highest margin this century and is now almost 14 pence per litre more expensive than petrol.
“The survey firmly illustrates the pressure that UK businesses are feeling as a result of rising fuel costs, and in particular the price of diesel,” said Lex managing director, Jon Walden.
The survey also found that 56% of companies did not feel they had received adequate notice from the Government for implementing the new changes in the laws on corporate manslaughter, corporation tax and capital allowances (to be introduced in April 2009) or changes in CO2 based vehicle taxation.
Reflecting this, 42% of businesses surveyed with company cars said they had no plans to make vehicles more environmentally friendly over the next six months and less than half of respondents reported that their company had policies or procedures in place to ensure it met its ‘duty of care’ responsibilities to employees in light of the Corporate Manslaughter Act