New company car tax rates will cost the Government £100m in lost revenue over the next two years, while drivers will face higher costs from new CO2 rating.
By Edwin Kemp, associate director Mobility 2030 at KPMG UK
The plug-in grant for certain electric vehicles (EVs) has been cut with immediate effect, after funding was secured for another three years.
The Chancellor has announced new company car tax rates in a Budget dominated by measures to soften the impact of Coronavirus.
Trade bodies call for support measures to help achieve the 2035 zero emissions goal.
BVRLA asks the fleet sector to act now to safeguard the future of the plug-in car and van grants.
The Treasury says that “consumers incentives will continue to play a role beyond 2020”.
Continuing concerns over the environmental credentials of diesel have led to a marked migration to petrol among leased company car fleets.
The British Vehicle Rental and Leasing Association is calling on the next Government to pledge their continued support for the plug-in car and van grants.
Announcement on future BIK tax rates also anticipated ‘very soon’ says Office for Low Emission Vehicles (OLEV).
Overall, the alternative fuel vehicle market rose by 12.7% in April, but zero emission-capable plug-in hybrids fell by 34%, says the SMMT.
Fleet Alliance says the Government lacks a clear and cohesive strategy to low emission charging zones, diesels and plug-in hybrid electric vehicles.
With so much media attention on Brexit there has been quite a welcome reduction in diesel coverage in the media.
By Craig Davy, commercial director at Vehicle Consulting
Grant-eligible vehicles were sold at a rate more than six times higher than normal, causing officials to put the new scheme in place on Sunday (October 21)
The latest news on the changes to the Plug In Car Grant scheme (PICG) have caused consternation, but this could be seen as a good sign
An influential Commons select committee has called on the Government to bring in a clear target for sales of new cars and vans to be zero emission by 2032.
The company says that future additions are looking very unlikely in the current circumstances.
The plug-in car grant for ultra-low emission cars will be cut by £1,000 and no longer apply to hybrid cars with a range of less than 70 miles, from November 9.
The Government has announced that the plug-in car and van grant will be extended until October 2018, having previously stated it would only remain until April 2018.
Fleet News offers a range of reports, whitepapers, in-depth features and manufacturer brochures to enhance fleet decision-makers' understanding of key issues and products.
Fleet News is published monthly, in print and digital formats.
Register now to see if you qualify for a free subscription.