http://www.fleetdirectory.co.uk/fleet-news/index.php/2009/04/17/fleet-industry-budget/
With speculation reaching fever pitch as to whether the embattled UK motor industry will receive a welcome shot in the arm, talk of green incentives and scrappage schemes have been rife in the media and the industry. But what of other areas where the Chancellor has direct control - Mr Darling has the power to reduce or raise the tax burden on companies and individuals; could there be a further announcement on the VAT reduction, much maligned since its introduction, or will Vehicle Excise Duty be tweaked?
In the Fleet industry with many still reeling from the increase in Fuel Duty on April 1st as well as coming to terms with changes to car allowances now linked to CO2 emissions, what do prominent figures in the industry most want to see in the budget – and what don’t they want to see?
We asked a selection of industry figures two questions:
* What is the one thing which you would like to see included in the Budget?
* And what is the one thing you don’t want to see included?
Robert Wentworth-James, head of sales and marketing at independently owned CLM Fleet Management. CLM was launched in 1981 and manages in excess of 20,000 vehicles on behalf of corporate clients nationally.
What is the one thing which you would like to see included in the Budget?
“I would like to see greater clarity in the government’s environmental approach in the Budget Speech, following the recent announcement regarding incentives for electric cars, as the first vehicles will not be available until 2010/2011 at the earliest.”
And what is the one thing you don’t want to see included?
“What we most definitely do not want to see is a continuation of the government’s fuel price accelerator, as fleets have faced a growing fuel cost burden in recent months and years. At a time of financial uncertainty as now, an additional cost burden is most unwelcome and could be the death knell for some companies, especially in haulage and logistics.
Ross Clarkson, marketing director, Northgate Vehicle Hire. Northgate is Europe’s leading light commercial vehicle rental business with extensive operations in the UK, Republic of Ireland and Spain.
In the UK and Ireland, Northgate has a network of 21 local hire companies operating from more than 80 rental locations providing nationwide coverage from Aberdeen to Plymouth. The fleet of 65,000 vehicles, most of which are light commercial vehicles, is the largest rental fleet in the UK.
What is the one thing which you would like to see included in the Budget?
“We would like to see more help for businesses, particularly in restoring confidence. One area where the Chancellor can do this is in helping organisations obtain credit insurance.”
And what is the one thing you don’t want to see included?
“With the UK economy predicted to shrink by up to 3.7% over the coming months we don’t want the Chancellor to do anything that will remotely result in any further contraction and negatively impact on GDP. In the fleet arena we do not want to see any announcements with regards to fuel duty increases.”
Julie Jenner, chairman, ACFO (Association of Car Fleet Operators). ACFO Ltd is a non-profit making organisation, and is the largest UK body representing the interests of businesses which operate cars and vans as part of their normal commercial activities. There are more than 900 members, collectively responsible for well over 700,000 vehicles in the UK fleet market.
What is the one thing which you would like to see included in the Budget?
“I would like to see an announcement that signals a genuine long-term investment commitment from the Government that encourages fleets to adopt alternatively fuelled vehicles. There should be no short-term incentive scheme, which would be seen as a repeat of PowerShift in the 1990s, which encouraged the fleet uptake of gas-powered vehicles and was then dropped when funding ran out causing significant marketplace concerns not least around residual values.”
And what is the one thing you don’t want to see included?
“Although the Government is keen to pursue a low-carbon agenda there must be no immediate short-term move to change the 10% benefit-in-kind company car tax rate, which is currently set at 120 g/km. The Government maybe keen to encourage the uptake of low emission models but a reduction of the 10% threshold to 110 g/km, for example, must only be made if business and drivers are given a ‘reasonable’ lead time to prepare for the change.”
Keith Vincent, marketing director at Active Risk Management (ARM). Active Risk Management (ARM) supplies fleet risk solutions to major fleet clients throughout the UK and offers a comprehensive approach to occupational road risk management.
What is the one thing which you would like to see included in the Budget?
“Hybrid cars, plug-in or otherwise, are the most likely stop gap before hydrogen fuel cell vehicles and, by offering front-end fleet subsidies, the Chancellor can make a bold, green statement of intent.”
And what is the one thing you don’t want to see included?
“As fleets already face an excessive fuel cost burden, we would not like to see further Excise Duty added to the pump price by the government.”
martin-brownMartin Brown, managing director, Fleet Alliance. Fleet Alliance manages over 8,500 vehicles on behalf of corporate clients. The company has ambitious growth targets and will deliver over 4,500 vehicles this year, with plans to increase this to 8,000 by 2012.
What is the one thing which you would like to see included in the Budget?
“I would be delighted to see a sensible vehicle scrappage incentive introduced. Whilst it is debatable as to whether or not it would directly stimulate the leasing sector, it would certainly bring some much needed confidence to the vehicle sector as a whole.”
And what is the one thing you don’t want to see included?
“The thing I would least like to see in the Budget is any further increase in VED tax, or indeed showroom tax, as this would act as a further dampener on demand, and what the economy most needs now is positive stimulus.”
stewart-whyte2Stewart Whyte, managing director, Fleet Audits. Fleet Audits is a leading specialist Consultancy, providing a wide range of strategic and policy support options for organisations which operate fleets.
What is the one thing which you would like to see included in the Budget?
“I would like the Chancellor to announce the permanent removal of the 3% diesel benefit-in-kind tax supplement.”
And what is the one thing you don’t want to see included?
“I don’t want to see another round of relatively short-term incentives, which deliver an apparent short-term benefit but potential long-term problems. These would include a narrow scrappage scheme along the lines outlined by the motor industry. The fleet/motor industry needs long-term strategic thinking from everyone and that includes Government.”
andrew-hunter2Andrew Hunter, commercial director at leading integrated telematics service provider, Eagle-i Telematics. Eagle-i Telematics is one of Europe’s leading Open Platform Telematics Service Providers, and offers a comprehensive capability portfolio including vehicle tracking, mobile asset management, satellite navigation, stolen vehicle recovery, telematics-enabled risk management (TERM) and lone-worker protection solutions.
What is the one thing which you would like to see included in the Budget?
“I would like to see incentives introduced for fleets that make meaningful and proactive investments in technology that helps reduce their carbon footprint. We need a clear signal as to the Government’s green intentions, so that fleets can make proper, informed and long term investment decisions.“
And what is the one thing you don’t want to see included?
“What we don’t want to see are any measures that increase the operating cost or legislative burdens that fleet operators already face.”
andrew-leech-portrait2Andrew Leech, business manager at fleet software solutions specialist Mycompanyfleet, the newly launched fleet and automotive division of HR solutions provider, NorthgateArinso.
What is the one thing which you would like to see included in the Budget?
“I would like to see the introduction of concessions on benefit in kind tax if drivers car share with colleagues on way to the office. This would help reduce congestion and pollution, especially in urban areas, and is definitely worth investigating.”
And what is the one thing you don’t want to see included?
“What we don’t need are any gimmicks relating to electric vehicles. These vehicles still rely ultimately on fossil fuels for their production and power, so until we address that core problem, the latest incentives can be little more than a gimmick.”
david-hoskingDavid Hosking, managing director at Tusker. Tusker is one of the fastest organically growing independent contract hire and fleet management service providers in the UK. Their award winning service is delivered through one of the most advanced live quotation and fleet management system in the UK and runs securely over the internet, helping companies reduce the time and hassle associated with running a fleet of company cars.
What is the one thing which you would like to see included in the Budget?
“We would like to see the introduction of a new BIK banding of 5% for vehicles of sub 110g/km in carbon emissions, to further encourage the take up of green fleet vehicles.”
And what is the one thing you don’t want to see included?
“I am hoping not to see a return to VAT levels above 15% later this year. We, along with many other businesses, worked hard to adopt the change from 17.5% to 15%, and the last thing we want is a return to even higher rates, please Mr Darling!”
The Budget will be delivered to the House of Commons on Wednesday 22nd April.
