The BVRLA has written to the Chancellor outlining how fiscal stimulus for the fleet sector could boost the country’s economic recovery following the Coronavirus pandemic and accelerate the transition to cleaner transport.

Alongside the publication of its new Covid-19 Recovery Plan, it says the Government must prioritise a “swift and robust” rebound in the automotive sector when considering measures to support the UK’s economic recovery.

In the letter, BVRLA chief executive Gerry Keaney states that fleets need a scrappage scheme which provides support for new and used low-emission vehicles, including electric, plug-in hybrid and Euro 6.

As part of a six-step plan, the BVRLA is calling for the Government to eliminate first-year VED from new car and van purchases until April 2021, extend the 0% benefit-in-kind (BIK) rate for electric cars for another year and launch a £1bn Clean Freight Fund to support operators with the purchase of cleaner vehicles.

The letter also asks for a delay of the new 50g/km CO2 threshold for the Lease Rental Restriction until 2022, on the basis that the supply of eligible vehicles is not yet ready to meet demand.

For leasing and rental companies, the BVRLA says the 100% first year capital allowances that are available to business when buying electric cars should be extended. It also says that if electric and plug-in hybrid vehicle rentals were VAT zero-rated there would be a surge in electric fleets.

In its recovery plan, the BVRLA outlines further suggestions as to how policymakers can help tackle air quality and emissions and drive transport behaviour change.

The full report can be viewed here.