Autumn Statement 2016 – What Does it Mean for Fleet?
Chevin managing director Ashley Sowerby provides some thoughts on 2016’s Autumn Statement
As far as fleet goes, we believe there is a general message in today’s statement that ULEVs – which the Government has generally later defined as sub-75g/km – are the way forward for the company car parc.
This can be seen at several points. The most obvious is the change to salary sacrifice, which over a number of years, will become only workable for those who want to drive a ULEV. However, the 2020-21 benefit in kind tax tables for company cars also support this argument, and there is even a first year capital disallowance for electric vehicle charging points, also announced.
At Chevin, we have long been supporters of low emissions technology and, more latterly, electric vehicles in general. We believe that EV technology is moving at a pace that makes its widespread adoption by fleets inevitable over the next few years. Measures such as these can only speed this process.
Elsewhere, there are other, isolated items of interest to fleets. Fuel duty is again frozen. Fleet insurance premiums are set to rise because of the increase in IPT, although measures are being announced to better control whiplash fraud.
However, all of this is being announced against a continued unpredictable economic backdrop. While there are reasons to believe that the economy will continue to be quite strong, for many businesses there will undoubtedly be increased pressure to control costs and a definite accent on efficiency over the next few years.”