Fleet News

BVRLA urges Chancellor to support ULEVs in Budget

The government should use the Budget to encourage business take-up of ultra-low emission vehicles (ULEVs).
That’s the view of the BVRLA in its annual Budget Submission to the Chancellor, which is urging the Government to extend the nil rate tax band for zero emitting cars until 2016/17.

The Government currently plans to increase company car benefit-in-kind tax on electric vehicles to 5% in 2015/16, and the association believes that reversing the decision would give a huge incentive to businesses when choosing which vehicles to run.

The BVRLA’s other suggestions to the government include:

•  Making a car’s list price (P11D value) inclusive of the Plug-in Grant
•  Reinstating the First Year Allowance for ultra-low emission leased vehicles
•  Supporting businesses to install charging points at workplaces
•  Capping Approved Mileage Allowance Payments at 3,000 miles

BVRLA chief executive Gerry Keaney said: “The Budget is the perfect opportunity for the government to prove it is committed to driving the take-up of ultra-low emission vehicles.

“The suggestions we’ve made will increase business take-up of efficient cars and vans, and enable the government to meet its goal of moving the car fleet in this country to ultra-low emission vehicles by 2040.”

Keaney added: “BVRLA members are responsible for buying nearly half of all new vehicles sold in the UK every year and it is vital that the government supports this sector by encouraging sustainable business transport.

“The take-up of ultra-low emission vehicles will be a marathon, not a sprint, but where the rental and leasing industry leads, the private sector will follow.”

Click here for electric cars and hybrids best practice and procurement insight

Login to comment


  • Alex Castle - 21/02/2014 12:45

    I am surprised that establishing an accepted HMRC mileage repayment figure for electric vehicles is also not amongst the proposals being put forward. Without this all-electric continue to prove problematic and hybrids an expensive proposition for business and actually incentivising mileage.

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