BVRLA 2010 Budget response

24 March

BVRLA chief executive John Lewis had this to say about Chancellor Alistair Darling's 2010 Budget:

“This was more of a pre-election statement than a Budget and there was precious little for road users to get encouraged about.”

“By doing nothing to reduce grey-fleet-encouraging AMAPs rates or the 3% diesel surcharge, the government has yet again failed to remedy the inequalities in its emissions-reduction strategy. However, we do applaud the fact that the Treasury has finally made existing tax incentives technology neutral.”

On specific Budget measures:

Fuel Duty:

“Staggering the 3p increase in fuel duty will give road users some respite. In reality, they are still applying the thumbscrews, just a little more slowly.”

Ultra-low carbon car tax:

“The Chancellor’s decision to halve company car tax for ultra-low carbon cars is a nice gesture that probably should have been made in the Pre-Budget Report. This is definitely an incentive for the future - company car drivers will struggle to find a suitable ultra-low carbon car at the moment.”

Reduced Pollution Certificates:

“It is great to offer an annual £500 VED rebate for operators buying Euro VI compliant vehicles, but where are people supposed to buy them? This is another green incentive that is great in theory but will make little or no difference for businesses any time soon.”

Road maintenance:

“According to the Annual Local Authority Road Maintenance Survey, local authorities already have an £800m shortfall in road maintenance budgets so handing them an extra £100m is not going to go far.”

Funding:

“The Chancellor highlighted the fact that interest rates remain at ultra-low levels, but he didn’t admit that lending rates have soared.

“We hope that the new Credit Adjudication Service will have a remit to help small businesses negotiate fair borrowing rates from their banks.”

“The vehicle rental and leasing industry has been exploring non-bank finance opportunities for some time and we hope that the government’s promise to help businesses find more diverse sources of funding will help.”

About the BVRLA:
The BVRLA is the trade body for companies engaged in the leasing and rental of cars and commercial vehicles. Its members provide short-term rental, contract hire and fleet management services to corporate users and consumers. They operate a combined fleet of around 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK. Through its members and their customers, the BVRLA represents the interests of more than two million business car drivers and the millions of people who use a rental vehicle each year. As well as lobbying the government on key issues affecting the sector, the BVRLA regulates the industry through a mandatory code of conduct.

For more information:
Toby Poston – Head of Communications
toby@bvrla.co.uk
tel: 01494 545700
mob: 07979 756533