BVRLA News
www.bvrla.co.uk April 2010
The newsletter of the British Vehicle Rental and Leasing Association
Transport ignored as debt dominates Budget by John Lewis More of a pre-election manifesto than a Budget, Chancellor Alistair Darling announced precious little to encourage road users last month. His speech was always likely to be dominated by the subject of the UK’s growing debt mountain and the spending cuts or tax rises that would be used to tackle it. There was no significant change in transport policy, spending or taxation. Judging by the Chancellor’s speech and the reaction it got from the opposition leaders, it is clear that the needs of road users are not high on the agenda of any of the main political parties in the run up to the election. On the positive side, the government has clearly been listening to the BVRLA’s calls for its emissions-based tax regime to be both technology-neutral and well mapped-out. This is a vital requirement for companies that are making major investment and funding decisions that will have implications three, four and five years into the future. Once again, however, there was some evidence of Labour’s penchant for spin in the way the Chancellor made a couple of announcements. Firstly, he suggested something of a reprieve for road users in the form of a staggered Darling: will he still be at the wheel after the general election?
increase in fuel duty over the next 12 months. It wasn’t until later that it emerged that this measure was overshadowed by the loss of the biodiesel differential, which will mean a major increase in fuel costs for the logistics sector. Elsewhere in his statement, Darling proudly declared that he would halve the benefitin-kind tax for ultra-low carbon cars and introduce a vehicle excise duty (VED) rebate for companies buying trucks that meet the Euro VI emissions standard. Unfortunately, there is little chance of a BVRLA member picking up a significant number of vehicles meeting either of these criteria within the next 12 months. Nor, it seems, is there much sign of the government tackling two of the biggest inequalities still remaining in its motoring tax strategy. Despite numerous representations from the BVRLA and other road user bodies, it resolutely refused to tackle the everincreasing grey-fleet use or the 3% diesel company car tax surcharge. Overall, this was a ‘phoney’ Budget containing little bravery or excitement and not much good or bad news. With the economy struggling and public finances in dire straits, a lot more needs to be said and done. But as with the Phoney War which began the Second World War, you get the feeling that the real action is just about to start. n
bvrla.co.uk
In this issue Rental ‘must engage with consumers’ The industry needs to improve the way it deals with customers, says the European Commission page 2 Association reviews ‘plug-in car’ options The BVRLA has reviewed how the government’s ‘plug-in car’ grants might work for members page 2 The Budget: all you need to know The impact of the March Budget on vehicle rental and leasing page 3 Who deserves the industry’s vote? We question Labour, the Lib Dems and the Tories on their transport policies page 4 A ‘helicopter view’ of business data How the BVRLA monthly data survey can help you page 6 Forums continue to draw large numbers Members stay informed about Residual Value and Remarketing and Service, Maintenance and Repair page 7
— Promoting responsible road transport since 1967 —