The British Vehicle Rental and Leasing Association (BVRLA) has written to HM Treasury ahead of the Spring Budget to outline fiscal measures required to support the fleet sector's recovery.
The BVRLA is calling for long-term tax certainty in the Budget and says the demand-side of the automotive industry spends over £30bn a year upgrading fleets, purchases 83% of vehicles made and sold in the UK, supports almost half a million jobs and contributes £49bn a year to the UK economy.
BVRLA chief executive, Gerry Keaney, said: “This Budget is an opportunity for the Chancellor to introduce measures that will give the fleet industry the confidence to invest, create jobs, and support economic recovery.”
“We need a long-term perspective on tax to combat uncertainty, support for the hard-hit rental sector, and some creative thinking on tax allowances that can unlock investment in green technology.”
In its pre-Budget submission, the BVRLA urges the Chancellor to:
- Freeze vehicle excise duty (VED) until April 2022
- 'Lock in' the previously announced benefit-in-kind (BIK) freeze and publish 2025-26 company car tax rates
- Create a 'Green Investment Allowance' to unlock private invesment in electric vehicle (EV) charging
Keaney said: “2021 will continue to be tough and the Government will need to extend further support to businesses.
“Fiscal support is crucial and providing clarity, certainty, and creative incentives are vital to that mix. This will enable fleets to take important decisions that will help to make 2021 a year of recovery.”
The Chancellor of the Exchequer, Rishi Sunak, has announced that the Government will publish the Budget on March 3, 2021.
Read the BVRLA's 2021 Budget Representation.