News - Page 2135

LEADING tax experts are warning fleet managers and their drivers to look ahead to see how they will be affected by major changes in the shape of Inland Revenue Authorised Mileage Rates. Drivers will either face a cut of hundreds of pounds or a rise of a similar amount in the level of support they receive, depending on the car they drive.

FLEET drivers who receive free fuel for private mileage will become an endangered species over the next year, as a 14% rise in tax on the perk wipes out any benefit for fleet employees. The increase, which is the fourth out of a five-year programme of rises - is less than the full 20% annual increase expected, because fuel prices, on which the increase is based, have fallen compared to this time last year.

A PACKAGE of measures to encourage the use of public transport and to 'green' Britain's travel to work - including an increase in the tax-free rate for car sharing on business trips - were confirmed in Budget 2001. The combination of measures were originally announced in November's Pre-Budget Report with the only change being an increase from 2p a mile to 5p a mile per passenger in the tax-free passenger rate to encourage car sharing on business trips in private cars from April 6, 2002.

THE Government's determination to wipe out the benefit of free fuel for private mileage flies in the face of the drive to encourage cleaner cars and the use of alternative fuels. As part of a five-year programme of tax rises aimed at discouraging drivers from opting for the 'perk', Chancellor of the Exchequer Gordon Brown has decided that it should cover all fuels, including 'green fuels' such as liquefied petroleum gas.

LOCAL authorities are taking the first steps in an environmental campaign that could lead to polluting fleet vehicles being banned from city centres. Nine cities are involved in a scheme to reduce traffic congestion and pollution in urban areas that could force a radical change in fleet acquisition policies.

NINE cities are being held up as low emissions Clear Zone 'trailblazers' in the UK. They are Nottingham, Newcastle, Leicester, Liverpool, Bath, Bristol, Camden, Winchester and York.

ONE of Britain's biggest fleets, Royal Mail, is embracing Chancellor of the Exchequer Gordon Brown's green Budget aims by revealing it could launch a massive electric vehicle fleet to help slash pollution in congested areas if cities become blocked to all but the cleanest vehicles. The fleet, which totals 30,000 vehicles, would need 5,000 EVs for city centre low emission zones.

NEW Government figures for 2000 show urban air quality to be the best since records began in 1993 with a strong downward trend in the number of bad air days - possibly the result of cleaner diesel and higher pollution standards for cars. In 2000, there were only 17 days of moderate or high air pollution in urban areas compared to 30 days in 1999 and 23 in 1998.

FLEET managers must take action to keep their drivers on the road as speeding convictions rocket through growing use of speed cameras and stricter speed limits. Since 1995, the number of drivers caught speeding has increased by 150% to more than half a million, of which more than 75,000 led to prosecutions.

VOLVO is to lead the development of car safety within the Ford Motor Company. The news comes after the launch of the Volvo EyeCar, which uses new technology designed to automatically give every driver the same optimum seating position to ensure the best possible visibility, comfort and safety.

NATIONAL Car Rental has joined forces with UK Youth to sponsor the organisation's Momentum programme throughout the UK. Momentum, incorporates 'First Gear', a young driver training programme aimed at 14- to 22-year-olds, designed to improve young drivers' skills and cut accidents.

EXPERIAN has introduced a new online reporting system that provides protection and monitoring of all finance company assets.

CHANCELLOR Gordon Brown eased the tax burden on fleets slightly, with a largely neutral budget from the company car perspective.

COMPREHENSIVE analysis of the fleet implications of Chancellor of the Exchequer Gordon Brown's Budget can be heard at the Fleet News Budget Briefing next Friday, March 16. The discussions will focus on issues including the further impact of fuel duty changes on fleet operations, the continuing increase in private mileage fuel scale charges and latest thinking on the April 2002 company car tax changes.

FLEET managers are facing confusion over the shape of the new style number plate system which could lead to drivers being pulled over by police if incorrect plates are displayed on company cars. The Driver Vehicle Licensing Agency has launched a campaign to inform fleets of the correct shape for the new number plate after spotting that manufacturers were releasing publicity shots of models with the digits wrongly placed.

ROCKETING demand for company cars following the introduction of carbon dioxide-based benefit-in-kind tax predicted by the Inland Revenue has been massively over-estimated, according to new research. Officials at the Inland Revenue remain convinced that there will be a boom in the number of company cars under the new system launched next year, with 200,000 extra staff taking to an employer-provided car.

FLEET drivers are costing their employers £200 million every year through vehicle wear and tear, claims fleet specialist Interleasing. Bumps, scratches, ingrained dirt and cigarette burns are all part of increasing driver abuse that means companies are footing massive repair bills at disposal time.

ONE of Britain's biggest high street names is recommending the latest diesel cars to its high-mileage drivers to keep their tax liability down. Boots has issued a leaflet to its company car drivers explaining the rule changes surrounding company car tax due next year.

CUT price daily rental firm easyRentacar is in talks with DaimlerChrysler to expand its fleet of Mercedes-Benz A-class vehicles to more than 20,000 cars over three years in a deal that could be worth more than £225 million at showroom prices. The rental firm is already committed to more than doubling the size of its fleet, from about 4,000 to 9,000 vehicles, in a deal with a retail value of more than £65 million announced at the Geneva Motor Show.

FLEET sales at dealer group Dixon Motors fell by nearly 15% last year as the firm tried to refocus its approach to business. The firm sold £11.2 million worth of vehicles to fleets last year, compared to £13.1 million in 1999, a fall of 14.8%, from 13,213 cars to 12,456.

BRITAIN'S largest independent petrol retailer, Save Group, has gone into administration. The group, which complained in January that despite high fuel prices, most of its revenue went to the Government in tax, blamed unreasonable interest rates from banks.

THE latest Alliance & Leicester Car Price Index has revealed that new car prices have fallen on average by 9.4% in the past year. The largest fall was among MPVs, down 14.8% and executive cars, down 16.5%, year-on-year, the survey has revealed.

A RECORD number of UK debuts will be unveiled at Fleet Show 2001 as manufacturers flock to sign up to the new London-based event, to be held at Alexandra Palace from May 1-3. A total of 17 manufacturers has so far booked to attend this year's show, at least 12 debuts are planned and more could be announced.

UK operating profits at international dealership group Inchcape were almost wiped out last year because of punishing falls in residual values. The firm's operating profit in the UK dived from £25 million in 1999 to £700,000 last year, with more than half the fall caused by residual value losses through leasing contracts and a further £6.5 million through investment in Autobytel UK, its e-commerce business.

WELL-known fleet industry figure Ken Forbes is to join Fleet NewsNet's parent company Emap Automotive as managing director of its motoring businesses. The move is part of a restructuring at the company aimed at devoting more resources to coverage of the motor industry.

THRIFTY Car Rental and Ford have signed a supply agreement that will see Thrifty take 4,500 new Ford vehicles in a deal worth £50 million at showroom prices - the largest Ford fleet deal Thrifty has signed. Ford has been the key supplier of vehicles to the Thrifty fleet for the last 10 years and the new deal means Ford vehicles will become 50% of Thrifty's planned 2001 acquisitions.