Fleet News

Autumn Budget tax changes deters drivers from diesel, says CLM

John Lawrence, CLM Fleet Management

Drivers are less likely to buy or choose a diesel as their next car following the introduction of the tax changes in the Autumn Budget Statement, according to new research from CLM Fleet Management.

CLM commissioned research immediately after the Budget Statement last week at which Chancellor Philip Hammond announced increases to the taxation of diesel cars - AFCO felt the tax increase was grossly unfair

The CLM study asked over 250 drivers, 'how will the new VED increase for new diesel cars impact on your likelihood to choose a diesel for your next new car?'

A total of 59% of respondents said they were less likely or much less likely to buy or choose a diesel as their next new car as a result of the rise in VED from April.

Drivers were also asked about their reaction to the 1% increase in BIK tax for diesels and the fact that electric and hybrid vehicle drivers will now not have to pay BIK tax for recharging their vehicles at work.

Some 62% of respondents said the changes would not alter their buying decision for their next new car, although 30% said they would be more likely to choose a plug-in car and 17% responding that they would be less likely to choose a diesel car.

The government also announced at the Budget that it would provide £100 million to guarantee the continuation of the plug-in car grant to 2020 to help with the cost of purchasing a new electric vehicle.  

Drivers were asked whether this initiative would make them more or less likely to buy a plug-in car as a result.

A total of 49% of drivers said it would make them more or much more likely to choose a plug-in car, with 51% saying it would make no difference to their decision.     

The Chancellor also revealed an additional £400m investment in charging infrastructure to increase the number of charging points across the country and to help pay for home charging.

However, when asked whether this initiative would increase the likelihood of choosing a plug-in car, 60% of drivers said it would make no difference to their decision with 40% saying they were now more or much more likely to choose a plug-in-car as their next new vehicle.

CLM’s managing director John Lawrence (pictures) said: “We have already seen a steep decline in diesel sales this year as drivers have reacted to negative publicity around poor air quality and diesels.

"And these latest announcements look set to accelerate that process.

“However, there is a considerable irony here in that the current generation of Euro 6 emission level diesels are the cleanest diesels ever to hit our roads with lower levels of NOx, particulates and CO2 than ever before.

“The new generation of diesels, including those that meet the RDE2 standards, will be cleaner still, and we maintain that diesels, particularly in situations where long range driving is standard practice, still have a perfectly valid and acceptable role to play in the fleet mix for many companies.“

Click here for fuel and fuel cards best practice and procurement insight

Login to comment


  • Nigel Boyle - 01/12/2017 16:12

    This would be true if there were an alternative. Petrol at a far higher cost, or electric with hours waiting on the motorway for it to charge. Rock or Hardplace comes to mind!

Related content

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