As we enter the final quarter of 2024, we have a new Government already coming under pressure both internally and externally.
From a fleet perspective Rachel Reeves first budget due on the 30th of October will, we hope, give us clarity on some of the burning issues:
- Will the manifesto pledge of an ICE sales ban being rescheduled to 2030 be confirmed, or will it be weakened to allow Hybrid sales to continue?
- The Tory government effectively scrapped the “fuel duty escalator” a move designed to encourage the use of lower emitting or BEV vehicles. With petrol and diesel prices at a 3 year low it is more than likely to be reintroduced, although a potential caveat being with inflation above BOE targets its introduction may be deferred until spring 2025.
- Chancellor may choose to underline this green move by reinstating the fuel duty escalator or a similar regime to ratchet up the economic pressure on consumers to go electric.
- Benefit in Kind tax is anticipated to be increased further on combustion engine vehicles and hopefully we get some clarity about BIK rates past 2028, which hopefully will maintain the momentum on BEV adoption as highlighted to the government by the BVRLA.
- Reduced advisory electricity rates (AER) have unfortunately decreased at a time when the energy price cap is increasing, highlighting loopholes in the calculation methodology. However, it is unlikely this will be reviewed.
- Will we introduce a tax on cheap imported Electric cars, protectionist moves in the USA on Chinese Electric cars may give the chancellor some ideas?
We shall see.
In other news, we are delighted to announce that Europcar have extended their Fleet Management Agreement with CBVC and also see the article on our new self-serve Daily Rental portal which we are very proud of.
We are here to help with anything automotive!
