Fleets, businesses and ordinary drivers will welcome the freeze on fuel duty and the extension of the existing 5p cut in the rate announced in today’s Budget commented Managing Director of CBVC Vehicle Management, Mike Manners.
The decision by the Chancellor to alleviate some of the cost pressures – particularly on commercial vehicle fleets – should be welcomed, he said.
“It certainly helps with consumer confidence against a background of fluctuating economic pressures, while helping fleets and businesses budget more effectively with fuel at its highest point since February in 2002. But I saw little evidence to assist the wider EV market, such as equalising VAT on the electricity at charging points – currently 20% – and on domestic use electricity, which is 5%.”
Mike Manners, Managing Director, CBVC Vehicle Management
Mike also added that to meet the Government’s Zero Emission Vehicle mandate – whereby 80% of all cars sold must be electric by 2030 – then there needed to be incentives for personal users to make the switch from petrol or hybrid to electric.
“We know there are strong incentives for fleets to move to EVs, but for the private driver facing the additional cost of leasing an EV over a hybrid then the choice is fairly stark. So not incentivising private drivers into EVs is a major opportunity missed,” Mike added.
In addition, the Vehicle Remarketing Association said that a similar lack of action on the used EV market was also putting a brake on the transition to cleaner driving.
The Chair of the Vehicle Remarketing Association added:
“What we really wanted to see from the Government was help to underpin the proper functioning of the used car market as it moves to electrification. There are clearly issues with levels of demand and residual values that need to be resolved as supply of EVs into the sector continues to rise quite rapidly.
“There are a range of possible solutions that have proven successful in other countries – from zero interest loans to subsidies. Unfortunately, there was nothing forthcoming in this area and this was a Budget that was very much about the politics of the forthcoming general election.”
