Fleet News

2011 Budget comment: BVRLA

“At last we have a Budget with some good news for motorists. As expected, the Chancellor has abandoned April’s 1p increase in fuel duty, but surprised everyone by delaying the inflation increase until next year and in fact reducing duty by 1p. His fair fuel stabiliser is ingenious, shifting the burden of taxation upstream when crude oil prices increase.

“Whether you are a haulier, a fleet manager, a commuter or a just someone trying to keep your family car on the road, this imaginative tax measure will have an instant impact on your weekly cash flow. For many it will be more important than all the other tax announcements put together.”

“However, there is nothing ‘fair’ about the government’s decision to maintain the 3% diesel surcharge within the company car tax regime. This discriminatory tax against diesel fuel is totally out-of-date and needs to be abolished.

“We would go even further and call for the government to investigate the continuing differential between diesel and petrol prices at the pumps which is nothing more than exploitation of business motorists and haulage companies.”

On Approved Mileage Allowance Payments (AMAP)

“The increase in AMAP to 45p is a back-door pay increase for public-sector and other grey-fleet users that will appease unions worried about job cuts and salary freezes. If the price of fuel has had such an impact on vehicle running costs, why are we not seeing a bigger rise in Advisory Fuel Rates (AFR)? The government shows how it works out the AFR rate, we now urge it to do the same for AMAP.”


“Along with the fuel duty changes, the freeze in VED for all commercial vehicles over 3.5 tonnes will be a welcome boost for CV operators.”

On company car taxes

“The CO2 bandings for company car and benefit-in-kind tax are seeing a natural downward progression that will maintain the incentive for companies to green their fleets. However, we would hope to see a return to the three-year view on these, which is essential for restoring certainty and predictability to organisations’ fleet decisions.”

On potholes

“While we welcome the extra funding for potholes, we hope that councils choose to invest this money in proper road repairs rather than ineffective, short-term pothole-plugging.”

On apprenticeships and work placements

“Growing youth unemployment is a major concern and we would urge our members to take advantage of the new programmes announced in the Budget to bring some more young talent into the industry.”

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