BVRLA Fleet and Mobility Services Manifesto

2017

A FLEET AND MOBILITY SERVICES MANIFESTO

MANIFESTO

The fleet industry and the BVRLA The fleet industry is the lifeblood feeding the vital organs of the UK economy. It is the trucks taking parts to our factories and stock to our supermarkets; the vans delivering parcels to our SMEs and plumbers to our houses; and the cars transporting salesmen to their customers and holidaymakers to their destination.

The industry doesn’t just enable economic activity, it makes a massive direct and indirect contribution to UK GDP through the millions of vehicles and engines it purchases and its activity in dealerships, garages and the used vehicle market.

BVRLA members have a unique perspective of the issues facing road transport in the UK. They have a long track record of working constructively with policymakers in driving down emissions, improving road safety and making road transport more cost efficient.

The British Vehicle Rental and Leasing Association has more than 900 members whose combined purchasing power is responsible for around a million new vehicle sales every year, contributing over £25 billion to the economy, and directly employing more than 50,000 people in the UK.

New technology has kick-started a revolution in the way vehicles are powered, used and managed.

The challenge for our next government is in how it embraces this move towards data-driven mobility services, and works with the fleet industry to ensure that it delivers positive outcomes for the UK – cleaner, safer and less congested roads, and a strong, competitive business environment.

As the owners and operators of more than 4.7 million cars, vans and trucks, and as providers of mobility services to millions of individuals and businesses,

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MANIFESTO

Tax and emissions The UK vehicle rental and lease sector is a major contributor to the UK economy, purchasing an estimated 1 million vehicles (including 308,000 UK-made vehicles) per annum, generating £24.9 billion in gross value added for the UK economy and employing 53,600 people. „„ The Government should reform the benefit-in-kind

Fleet buyers base their purchasing decisions on rational, cost-based criteria. The motoring and company car tax regimes have proven hugely effective, both in raising revenues for the Government, and in providing a ‘carrot and stick’ tool that encourages drivers to use vehicles that emit less CO2.

(BIK) ratings, with greater granularity on lower CO2 thresholds so as to provide sufficient incentive for the take-up of ultra-low emission vehicles.

„„ The Government should remove the discriminatory tax rule that prohibits ultra-low emission leased vehicles from qualifying for First Year Capital Allowances.

We are concerned that the disproportionately large tax increases outlined or already introduced by this Government will have a negative impact on both tax revenues and the uptake of ultra-low emission vehicles.

BVRLA members operate the newest, cleanest and safest cars, vans and trucks on UK roads and also provide essential fleet management services, ensuring that vehicles are regularly maintained and serviced and that drivers meet health and safety requirements.

„„ The Government should introduce a new tax category for electric vehicles (EVs) that is based on their range (miles travelled before requiring a recharge).

„„ The Government must get to grips with the issue of Grey Fleet, which sees private vehicles used for business purposes. Recent research from the BVRLA and Energy Saving Trust shows that grey fleet costs the public sector around £786m per year and is responsible for 447,000 tonnes of CO2 and 1,118 tonnes of NOx. The figures are even bigger in the private sector, with an estimated annual cost of £5bn, 3.2m tonnes of CO2 and 7,038 tonnes of NOx at stake. The Government should immediately set some ambitious targets for cutting public sector grey fleet mileage and costs and launch a communications campaign highlighting alternatives to grey fleet use and offering best practice guidance.

„„ HM Treasury should modify the current regulations governing refunds of Vehicle Excise Duty payable when a vehicle is re-sold within the first year, to allow rental companies to reclaim the full amount outstanding (compared to the current system which only allows sellers to reclaim a proportionate amount). While abuses must be guarded against, these may be overcome by restricting full refunds to vehicles re-sold and not merely declared as off-the-road (SORN), and after a given period of six months.

„„ The Government should carry out a wholesale review of company car taxation, recognising the benefits of company cars in terms of reduced emissions and revenue to HM Treasury.

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MANIFESTO

Addressing air quality Air quality has rapidly risen to the top of the Government’s public health agenda.

Transport is responsible for 80% of nitrogen oxide pollutants in the areas with the worst air quality, most of which is related to direct emissions from motor vehicles.

The problem has been exacerbated by the growth in uptake of diesel cars, which was driven by policies aimed at reducing CO2 emissions. From 1990, diesel cars saw their share of national road transport NOx emissions rise from virtually zero to 40%, while petrol cars dropped from nearly 70% to less than 10%.

The fleet industry fully understands the urgent need to address air pollution in the UK, which requires a change in the way we travel and the vehicles we use.

would like to work with both national government and local authorities to promote vehicle rental, vehicle leasing and car clubs as potential solutions for those affected by the new standards.

„„ There must be a clear guarantee that no business making purchasing decisions on the basis of the current emissions standards will be penalised retrospectively if they are amended.

„„ Any diesel scrappage scheme must be flexible

The Government needs to move from consultation to action as soon as possible. The BVRLA would like to see a carefully blended mixture of incentives and restrictions that encourage more sustainable travel behaviour but don’t punish motorists for decisions that they have already made based on previous Government policy.

and targeted. It should provide assistance for companies looking to replace or retrofit older, more polluting commercial vehicles. Such a scheme should encourage private car owners to swap their existing car for a pure electric alternative, and provide sufficient incentives or subsidies to encourage this. It should inspire private motorists to give up their cars and look at more sustainable modes of transport, but also provide them with credits for car rental and car club use for essential journeys that require a car.

„„ The Government needs to build on its recently published Clean Air Zone framework for England by providing additional guidance to ensure consistency in terms of standards, enforcement, timescales for introduction, and penalties for noncompliance.

„„ The Government should continue to fund and support the Plug-in-Car and Plug-in-Van Grants, gradually adjusting the CO2 emissions and zeroemission requirements to ensure that the incentive keeps pace with advances in technology.

„„ The Government must carry out an engagement campaign to ensure businesses and individuals are aware of the new standards required. The BVRLA

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MANIFESTO

Safer roads UK roads are among the safest in the world, but accidents still produce an unacceptable number of deaths and injuries each year, while costing the economy billions of pounds. „„ Further incentives for the fitment of AEB and other

The vast majority of these accidents are caused by human error, and advances in vehicle technology have created a fantastic opportunity for the Government to work with the fleet sector in drastically reducing their occurrence:

technology proven to have a demonstrable impact on reducing road accidents, should be considered.

For example, Thatcham Research has estimated that if a £500 incentive was offered to those drivers choosing to purchase a car with AEB fitted, this could reduce road casualties by 136,000 over the next ten years.

„„ The Government must encourage the takeup of technology which has a demonstrable impact on the numbers of accidents and their severity. Autonomous Emergency Braking is now mandatory for all HGVs registered in the European Union and ensuring mandatory fitment of AEB in all cars and vans is strongly recommended.

„„ We welcome the Government’s adoption of a minimum 5-Star NCAP rating for all fleet vehicle purchases. We propose that it goes further by ensuring that AEB is mandatory requirement for all vehicles in the Government fleet.

Making a success of Brexit The UK is now committed to withdrawing from the European Union and the fleet industry is ready to support the Government in securing the best possible outcome The BVRLA has consulted with its members and produced the following recommendations that should guide the UK Government’s negotiations to leave the European Union. „„ The United Kingdom needs a barrier-free

vehicles, as well as the cost of those exported from the UK.

relationship with its most important trading partner.

It should remain a member of the European Economic Area, or otherwise secure tariff-free access to the Single Market. This is necessary in order to continue the sector’s ability to purchase from international vehicle manufacturers without having to pass on additional costs to rental or lease drivers.

„„ The UK needs a clear plan for regulation that provides certainty in the short-term, and balances the need for simplicity and equal access to opportunity over the longer term. This is particularly important for the commercial vehicle sector, where EU Regulations and Directives govern the transportation of goods and vehicle standards. It is vital to avoid a ‘Cliff-edge’ exit that causes disruption.

„„ In the event of the Government deciding not to remain a part of the EEA, a trade preference scheme must be established with the remaining EU Member States. This is vital to avoid falling back on World Trade Organisation (WTO) tariffs, which would increase the price of imported

„„ The UK needs a balanced migration system that enables businesses to access the skills and labour they need to grow and innovate.

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MANIFESTO

Red tape and regulation The UK fleet and logistics sectors are still constrained by red tape and regulations that are either unfit for purpose or are no longer relevant. „„ The Government should build on the successful

„„ The Government should abandon any proposed

introduction of authorised testing facilities (ATFs) for commercial vehicles by removing the requirement that vehicle examiners should be directly employed by the DVSA. Removing the DVSA’s monopoly and providing HGV testing via the same MOT testing model available for private cars and light commercial vehicles would result in a much more flexible, efficient testing service.

extension of the O-licence from 3.5 to 2.8 tonnes, concentrating instead on the implementation of the ‘earned recognition’ scheme. Following this introduction, Government should commission a study on the safety and operability of the current system of van regulation, with careful consideration to the requirement for a new form of intermediate licence to sit between the driving licence and HGV O-licence.

„„ The Government should raise the driver CPC exemption criteria, exempting people that are moving commercial vehicles within a 100km radius for non-hire or reward purposes.

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MANIFESTO

Connected vehicles and data It is vital that fleet operators, OEMs and third-party suppliers develop new ways of working to realise the full potential of connected vehicles and their data. To make this happen, we need common technology standards and a regulatory framework that maintains an innovative and competitive market for automotive products and services.

By fostering such an environment, the Government can ensure that the UK is in the vanguard of a rapidly developing market for new mobility services. „„ The Government needs to collaborate with

„„ The Government should support the development

its counterparts in Europe to ensure that Type Approval and Block Exemption legislation is revised and updated to reflect the emergence of a new market for connected vehicle data. These two pieces of legislation could play a vital role in ensuring that vehicle manufacturers do not gain a position of unfair market dominance through their privileged access to data.

of an ‘NCAP-style’ rating for the cyber security of connected vehicles. This would enable fleets to make more informed purchasing decisions and encourage vehicle manufacturers to treat cyber security as a point of competitive advantage.

„„ The Government’s Centre for Connected and Autonomous Vehicles should be given the resources to develop a central repository of the latest regulations, standards, research, and other information surrounding this area.

„„ The Government must work with participants across the automotive supply chain to ensure that all parties share data in an open, secure and fair way. The BVRLA supports the concept of a Mobility Data Hub that could be set up by Government to provide a neutral voice advocating and providing guidance on data accessibility.

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MANIFESTO

Acknowledgements The BVRLA regularly engages with members and other road transport stakeholders to discuss some of the key issues affecting the fleet and mobility services industry. The BVRLA would like to thank the following organisations who contributed to its 2016/17 round of policy round tables: Ageas Insurance, Alphabet GB, Arcadia Group, Arval UK, ARI Fleet, ABI, Barclays Bank, Bluepoint, BT Fleet, Clydesdale Bank, DAF Trucks, DGC Vehicle Rental and Contract Hire, Diageo, DriveNow UK, Drivetime Rental, Emissions Analytics, Enterprise Rent-A-Car, Europcar Group UK, Fleethire, FMG, Fraikin, FSB, GKL Car and Van Rental, Hertz UK, Hitachi Capital Vehicle Solutions, Inchcape Fleet Solutions, JCT600 Vehicle Leasing Solutions, John Lewis Partnership, KPMG, LeasePlan, Lex Autolease, Lloyds Banking Group, LowCVP, MAN Financial Services, Marshall Leasing, Miles and Miles, Nissan UK, Prohire PLC, RAC Foundation, Royal Mail, Ryder, SG Fleet, SHB Hire, SMMT, Synergy Automotive, Thatcham Research, Transflex Vehicle Rental, Transport Systems Catapult, Turner Hire Drive, Tusker, University of Buckingham, Volkswagen Financial Services, Volvo UK, Zenith, Zipcar UK. The BVRLA policy recommendations proposed in this manifesto were inspired by these discussions but should not be taken as the official view of any of the organisations listed. A more detailed summary of these discussions and the BVRLA’s policy recommendations can be found in a series of policy papers published on the BVRLA website.

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