The latest push in the BVRLA's #SeeTheBenefit campaign has seen the association brief dozens of MPs on the vital salary sacrifice market. The drop-in event at the Houses of Parliament was synchronised with the arrival of more than 160 letters from industry professionals, calling on the new Chancellor to keep tax rates on electric company cars low.
The campaign was launched this summer and is pushing for Benefit in Kind (BiK) rates for electric cars to be kept as low as possible for as long as possible. It comes at a time when there is intense scrutiny on the Chancellor’s upcoming budget (due 17 November).
This week the BVRLA also wrote to the Chancellor on behalf of more than two million UK workers that are currently eligible for an electric salary sacrifice car.*
BVRLA Chief Executive, Gerry Keaney said: “Low company car tax rates are pulling people into cleaner vehicles and accelerating our progress to net zero. To maintain the trajectory towards the Government’s 2030 Phase Out target, we need clarity on future rates and they must remain as low as possible for as long as possible.”
The #SeeTheBenefit campaign kicked off this summer and has already seen over 2,000 industry professionals write to their local MPs asking for their support.
Via a simple form on the BVRLA website, colleagues can lend their support to the campaign and make the collective voice of the sector as loud as possible. The pre-written letter will be sent to their local MP, urging them to back the campaign.
-ENDS-
*The open letter to Jeremy Hunt MP, current Chancellor of the Exchequer, included signatures from:
- Trade bodies and NGOs, inc: BVRLA, AFP, Energy UK, EV100, Hospitality UK, and REA
- Salary sacrifice providers, inc: Alphabet, Arnold Clark, Novuna, Octopus Electric Vehicles, Ogilvy, NHS Fleet Solutions, Tusker, and Zenith
The combined number of employees eligible for electric vehicles via salary sacrifice provided by the co-signers is 2,053,600
Supplementary quotes from campaign supporters:
Jon Lawes, Managing Director Novuna Vehicle Solutions and BVRLA Chair: “It’s imperative the Government remains steadfast in its conviction to support the transition to zero emission mobility by accelerating the rollout of EV charging infrastructure and providing much needed clarity for corporate fleets on BiK rates beyond 2025. Retaining low BiK rates and removing the uncertainty around company car tax bands will give businesses confidence in their ability to meet net zero deadlines.”
**
Claire Evans, Fleet Consultancy Director, Zenith Vehicles: “Setting appropriate benefit-in-kind levels for electric vehicles has been an overwhelming success in driving the growth in uptake of both the salary sacrifice and company car schemes. At Zenith, more than 85% of salary sacrifice orders are for electric vehicles, with four in five of those coming from drivers who are new to taking a company car.
“This is why we support the BVRLA demand for Government to end the uncertainty and commit to keeping BiK levels appropriately low from 2025. This will incentivise the next cohort of potential EV drivers who, on top of facing inflationary pressures, are less likely to be able to charge at home, and therefore face higher charging costs associated with the public charging network.”
**
David Hanson, Managing Director, NHS Fleet Solutions: “NHS Fleet Solutions has registered over 20,000 battery electric vehicles since April 2020. Currently over 90% of our 37,000 car fleet is either a BEV or a PHEV. In order to continue on this trajectory, clarity on BIK rates beyond 2025 is necessary, alongside a commitment from Treasury to maintain taxation at a level which encourages the switch to electric from higher polluting vehicles."
**
