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The UK Government missed an early opportunity to give the transition to zero-emission vehicles some welcome support, failing to reference the impending electric vehicle tax hikes or its recent ZEV Mandate consultation in today’s Spring Statement.

Toby Poston, BVRLA Chief Executive comments: The Government’s oft-repeated, long-term economic priorities of stability, investment and growth are also exactly what the electric vehicle market requires. But the ambitious ZEV Mandate targets mean that these BEV market essentials need to start being delivered in the coming weeks and months, not years. 

Chancellor Rachel Reeves has announced a £65 million investment in electric vehicle (EV) charging infrastructure as part of a broader plan to stimulate economic growth. A key focus of last week’s speech was improving on-street charging access to accelerate the UK’s transition to zero-emission transport.

The vehicle rental and leasing sector is seeing its optimism and enthusiasm for 2025 shackled by tax rises on top of regulatory and ZEV Mandate uncertainty. That is according to the BVRLA’s latest Industry Outlook Report, which shows that members are expecting somewhat of a ‘Jekyll and Hyde’ year in 2025. 

The Chancellor’s Budget in October announced changes to Vehicle Excise Duty (VED) and taxation of double-cab pickups, both of which are likely to impact BVRLA members and their customers. The BVRLA has updated its factsheets for company and fuel taxation to reflect the latest information.

The Vehicle and Fleet Management and the Residual Value and Remarketing Forums marked their 2024 conclusions over the past two weeks, drawing more than 110 delegates across the two events.

Sharp increases in Vehicle Excise Duty (VED) announced by the Chancellor last month are expected to have a notable impact on the rental sector. Having targeted non-electric vehicles with high increases from April 2025, the revised VED rates were discussed as part of the BBC’s Wake Up to Money radio show last week.

BVRLA members have been subject to a handful of notable external developments in recent weeks. Events such as the Commission Disclosure ruling and the recent Budget have affected businesses across the industry.

Last week’s Budget was publicised beforehand as being a painful one, with difficult decisions needing to be made. Its contents demonstrated the challenging economic climate facing the nation, but did contain some green shoots around road transport decarbonisation.

The Budget on 30 October 2024 contained several updates that will have an impact on BVRLA members. Key details are summarised here:

Today’s budget from the Chancellor demonstrates the challenging economic climate facing the nation, but contained some green shoots around road transport decarbonisation, according to the BVRLA.

With a new year on the horizon, the rental and leasing industry again faces significant changes and challenges. December's Industry Outlook Conference offers an invaluable opportunity to prepare your business for the future, with expert insights, practical advice, and peer-to-peer engagement.