November/December 2015

www.bvrla.co.uk

BVRLA News The bimonthly newsletter of the British Vehicle Rental and Leasing Association

VW promises to assist customers on emissions Volkswagen Group has pledged to work with the BVRLA to ensure that they – and their customers – receive ongoing communications and assistance as it deals with the aftermath of its emissions issue. VW Group UK Managing Director Paul Willis met with the association and a cross-section of members in early December, where he provided an update on the current situation and promised to support the fleet industry. On the issue of potentially inaccurate CO2 figures, he confirmed that there was no need to make any retrospective changes to the certified emissions for VW Group cars already on the road. A small number of model variants would have their published CO2 figures adjusted going forward (as in the normal course of production and testing). Willis said that for customers who had any of these vehicles currently on order, VW Group would be in contact with the leasing companies that have affected orders to

agree the best way to manage them and minimise any inconvenience. For members affected by the NOxrelated service action relating to approximately 1.2 million VW Group cars in the UK, the BVRLA has agreed to work with the carmaker to co-ordinate a communications strategy. This will include understanding timelines for vehicle service actions and details of a range of potential mobility solutions that will be made available to affected drivers. Willis confirmed that the service action would be completed at no cost to the customer and that VW Group would communicate with fleets using whichever channel worked for them. The BVRLA will continue to monitor both issues to ensure that VW addresses any impact on members and their customers. u Members can stay abreast of the latest developments regarding the VW emissions story via the association’s dedicated advice page: www.bvrla.co.uk/advice

Chancellor’s plans hit company car drivers Autumn Statement and Spending Review focus on benefit-in-kind tax bands, with diesel supplement targeted. page 4 Roundtables set out to shape policy A series of BVRLA meetings between members, experts and government officials aims to inspire action on industry concerns. page 5 Industry Conference: Minister recognises sector’s contribution The role of the vehicle rental and leasing sector in the UK economy has not gone unnoticed. page 6 Dates for your diary! The calendar of BVRLA events for 2016 has been unveiled. page 8 It’s Paxman! TV inquisitor Jeremy Paxman will be the headline speaker at the BVRLA Annual Dinner in March 2016. page 8

BVRLA Annual Review: The 2015 edition of the BVRLA’s Annual Review has been published. Hard copies have been sent out to all members, and the publication is also available to read online: www.bvrla.co.uk/annual-review.

Leasing figures rise The BVRLA’s latest survey shows the number of vehicles on fleet continued to rise in the third quarter. page 9

• Promoting responsible road transport since 1967 •

Insert full-page advert here

The BVRLA returns to London’s West End for its Annual Dinner The Big Event! It is the only evening to bring the whole industry together - last year more than 900 people representing over 100 companies enjoyed top-class food and entertainment at the London Hilton on Park Lane. Why not bring some of your clients or business partners to this must-attend occasion, which is widely acclaimed as the friendliest, funniest and most looked-forward to event on the rental and leasing industry calendar?

As well as providing an unrivalled opportunity to network amongst your peers, you can join with us recognising some of our industry’s most talented individuals and unsung heroes. Further details on the event will follow. Interested in finding out about our sponsorship packages for this event? Email Felisha@bvrla.co.uk

BRITISH VEHICLE RENTAL & LEASING ASSOCIATION

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t #BVRLAdinner To book, please contact Felisha Weekes on 01494 545 703 or email Felisha@bvrla.co.uk

The BVRLA team Chief Executive Gerry Keaney 01494 545716, gerry@bvrla.co.uk Secretary to the Chief Executive Kate McLaren 01494 545709, kate@bvrla.co.uk Management Accountant Bharti Ladwa 01494 545708, bharti@bvrla.co.uk Director of Communications & External Relations Toby Poston 01494 545700, toby@bvrla.co.uk Research & Insight Manager Hazel Collier 01494 545717, hazel@bvrla.co.uk Media & Communications Officer Jamie Fretwell 01494 545710, jamie@bvrla.co.uk Marketing & Communications Administrator Tamsin Stuczynska 01494 545707, tamsin@bvrla.co.uk Director of Member Services Nora Leggett 01494 545713, nora@bvrla.co.uk Events Executive Felisha Weekes 01494 545703, felisha@bvrla.co.uk Learning & Development Specialist Gursh Gill 01494 545719, gursh@bvrla.co.uk Marketing & Administrative Executive James Mansfield 01494 545720, james@bvrla.co.uk Director of Policy & Membership Jay Parmar 01494 545706, jay@bvrla.co.uk Membership Manager Greg Theaker 01494 545705, greg@bvrla.co.uk CRM Project Lead Robert Burford 01494 545702, robert@bvrla.co.uk Senior Policy Advisor Patrick Cusworth 01494 545712, patrick@bvrla.co.uk Legal & Policy Executive Amanda Brandon 01494 545701, amanda@bvrla.co.uk Compliance Officer Natasha Howard 01494 545718, natasha@bvrla.co.uk Conciliation Service Manager Sallie Catchpole 01494 545715, sallie@bvrla.co.uk Conciliation Service Officer Stephen Dix / Sarah Philp 01494 545711, stephen@bvrla.co.uk / sarah@bvrla.co.uk

Comment By Gerry Keaney, BVRLA Chief Executive

Five codes of conduct make one strong industry Codes of conduct have played a vital role in establishing the business-friendly environment enjoyed by most Western democracies. Governments take a lightertouch approach to regulating and monitoring business activity and, in return, companies sign up to an official code recognising their corporate responsibilities and accountability. Often, whole sectors come together to form an industry trade body and agree a common set of standards. By doing this, they simplify the process, share the effort and create a forum for promoting this best practice and communicating their good work. In a nutshell, this is exactly how the British Vehicle Rental and Leasing Association came into existence nearly fifty years ago. Broadly speaking, there are two types of code of conduct. The first and easiest option is to publish a voluntary, aspirational code that sets

out a general statement of aims. The second, more difficult, approach is to set out a more demanding range of specific commitments that are independently audited. I am proud to say that this is the approach the BVRLA and its members have always taken. We believe that the five sectorspecific codes that come into effect from January 2016 will fit today’s modern, multi-channel vehicle rental and leasing environment and give your customers the protection and assurance they deserve. They will be backed by a stronger governance regime that will review members’ compliance but also provide more feedback and guidance. In return for your commitment to meet these standards, your association will strive to ensure that your efforts are acknowledged by regulators and customers – with both recognising the BVRLA logo as the quality standard benchmark for affordable, safe and sustainable road transport. u

The British Vehicle Rental & Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Fax 01494 434499 Email info@bvrla.co.uk Web www.bvrla.co.uk © Copyright BVRLA 2015. BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

Honorary Life President Freddie Aldous Chairman Simon Oliphant

Vice Chairman Peter Cakebread Honorary Treasurer Brian Back

BVRLA News | November/December 2015

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NEWS

Chancellor’s Statement disappoints The Chancellor of the Exchequer, George Osborne, has set out his spending plans for the next three years and an economic forecast for 2016.

The Chancellor said the deferral was because the introduction of more rigorous EU emissions tests had been “slower than had been expected”.

latest, safest, most fuel-efficient vehicles on UK roads.”

In his Spending Review and Autumn Statement, presented to Parliament in November, Osborne announced that he was deferring the removal of the 3% diesel supplement on benefit-in-kind tax bands. Due to be removed in 2016, this will now not be lifted until 2021, earning the Treasury an extra £1.4bn from UK companies and company car drivers during this Parliament.

Commenting on this, BVRLA Chief Executive Gerry Keaney said: “We’re disappointed – this move will penalise company car drivers for decisions they have already made, based on the Chancellor’s 2012 announcement that the supplement would be lifted in 2016. What is especially frustrating is that many of these motorists are being punished for driving some of the

Osborne announced £13.4bn of funding to deliver the Roads Investment Strategy, and £600m to support the uptake and manufacturing of ultra-low emission vehicles in the UK. He also said that annual motor insurance premiums could fall by £40-£50 per car if new government plans take effect.

The BVRLA has since met with HM Treasury to raise these concerns.

The van benefit charge – paid by employees who have private use of a vehicle – rises by £20 to £3,170, so a 20% taxpayer would pay another £4 per year. The van fuel benefit rises by £4 to £598 from April 2016, costing LCV drivers an extra 80p a year. The Chancellor also reiterated the government’s “concern about the growth of salary sacrifice arrangements” and said that it is considering what action, if any, is necessary. He outlined plans to gather further evidence to inform the government’s approach. u To discuss the Autumn Statement or Spending Review, contact Senior Policy Advisor Patrick Cusworth.

The road ahead: the Chancellor has set out his three-year spending plan

Contact Patrick Cusworth 01494 545712 patrick@bvrla.co.uk

HMRC urged to ask for 60% VAT reclaim The BVRLA has called on the government to support its call for businesses to be able to reclaim 60% of the VAT on hire or lease payments. Having surveyed a wide variety of companies for their leased business cars’ mileage data, the BVRLA has been able to provide HM Revenue & Customs with evidence from more

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than 61,000 leased vehicles used for business and private use. Between them, these drivers had covered more than 795 million miles in the past calendar year – more than 60% of which was for business use. Currently, businesses can reclaim 50% of the VAT incurred on the finance element of a company

car lease or hire. Because the European Commission has to approve this ‘derogation’, the UK government has to justify it every three years in order for it to be renewed. The 50% rate has been in place since 1995, with the current arrangement set to end on 31 December 2016. u

November/December 2015 | BVRLA News

Smarter services needed The BVRLA is finalising its response to the government’s consultation on its strategy for the motoring agencies for 2016 to 2020. The strategy is expected to be published in Spring 2016. The BVRLA will recommend: Discussion group: leading industry figures joined the road safety session

Autumn roundtables set to shape transport policy The BVRLA’s Autumn series of policy roundtables concluded with a well-attended debate on Business Car Taxation at KPMG’s London’s headquarters.

As well as informing the BVRLA’s own policy positions on these issues, the discussions have contributed to several submissions to government consultations.

The roundtable, which followed similar events on the issues of vehicle safety, intelligent mobility, and air quality, was attended by BVRLA members from the rental and leasing sector, and operators of large commercial fleets.

The policy recommendations agreed by attendees have been drafted into policy papers to be placed with government ministers, senior departmental advisers and other leading political stakeholders. They were also presented to Transport Minister Robert Goodwill MP at the BVRLA’s Christmas Parliamentary reception on 16 December. u

The BVRLA is particularly pleased that the business car taxation roundtable was joined by representatives of HM Treasury. It mirrored the success of the three previous roundtables, which were attended by representatives from the Department for Transport, Department for Business, Innovation & Skills (BIS); Department for Environment, Food & Rural Affairs (Defra), and the Office of Low Emission Vehicles (OLEV).

To discuss the policy roundtables, or to access the recommendations agreed at them, contact Senior Policy Advisor Patrick Cusworth. Contact Patrick Cusworth 01494 545712 patrick@bvrla.co.uk

2016 Legislative Outlook January Driver CPC amendment. New Lease Accounting Standard. Annual Investment Allowance will drop to £25,000 from £500,000. London Safer Lorry Scheme. March Plug-in Car Grant structure changes. By April VAT derogation outcome expected. MOT Consultation closes.

Second Quarter Motoring Services Consultation outcome published. Air Quality Strategy Consultation outcome. Throughout the year, the BVRLA will lobby HM Treasury on BenefitIn-Kind and Vehicle Excise Duty. The association will also work to make vehicle manufacturers fit autonomous emergency braking as standard in new cars.

BVRLA News | November/December 2015

› that the Department for Transport (DfT) expands the number of HGV testers by allowing private sector testers. › better use of data from the Driver & Vehicle Standards Agency (DVSA) to help fleets manage their car and van MOTs. › that the Driver & Vehicle Licensing Agency (DVLA) becomes the penalty charge notice issuer for local authorities and private parking companies.

FCA revises redress rules The Financial Conduct Authority (FCA) will change the complaints procedure for the firms it oversees next year. An extended period for handling complaints informally and a new complaints form will be introduced on 30 June 2016.

For full details see the FCA website: www.fca.org.uk

Lease accounting update The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have confirmed their intention to publish the new common standard for accounting for all leases by the end of 2015. It will be applicable from 1 January 2019. The BVRLA is planning a series of events to raise awareness of the changes. To register your interest email Events Executive Felisha Weekes: felisha@bvrla.co.uk Further information on accounting standards can be found on the BVRLA website: www.bvrla.co.uk

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BVRLA INDUSTRY CONFERENCE

Minister recognises key role of members

Vehicle rental and leasing’s importance was recognised at the BVRLA Industry Conference Andrew Jones, the Parliamentary Under Secretary of State for Transport, has commended the rental and leasing industry for playing a crucial role in shaping the UK vehicle parc. Appearing by video link at the BVRLA Industry Conference, he told delegates: “I recognise the importance of this sector to the economy. This includes the massive buying power of the sector. As buyers of 80% of UK-manufactured vehicles sold here, you can together affect the use of technology massively.” After discussing the ongoing emissions crisis, Jones commented: “The government is not anti-diesel. Diesel cars have played and continue to play a valuable role in reducing

fuel usage and emissions of carbon dioxide. Tackling air quality is a priority for the government. “There are at least 29,000 early deaths each year associated with poor air quality. This is unacceptable, and the government has recently consulted on its air quality plans. A major part of the approach is for local action on clean air zones. We will continue to work with Defra on common standards for clean air zones. This is designed to give longterm certainty to the leasing and rental sector.” BVRLA Chief Executive Gerry Keaney said: “It’s reassuring to hear the Minister reflect so many of the issues we’ve raised with him in recent months. It’s clear he has heard our message and recognised our sector.

We look forward to working with him over the next year.” More than 120 senior figures from the rental, leasing and fleet management sectors heard the Minister’s comments at the 3 December conference. Hosted by BVRLA Chairman Simon Oliphant, delegates also heard from Element Energy’s Celine Cluzel, CAP HPI’s Dylan Setterfield and Nissan’s Karl Anders. Panel sessions discussed whole-life costs, customer service in the digital age and future mobility trends. Throughout the day, delegates had the opportunity to drive and examine the latest electric vehicles from Tesla and Nissan. The 2015 Industry Conference was supported by CAP and KeeResources. u

Networking: a feature of BVRLA events • Applause: attendees show their approval • LEAF: Nissan’s electric car

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November/December 2015 | BVRLA News

Gerry Keaney: the BVRLA Chief Executive addresses a well-attended conference at the National Motorcycle Museum

Simon Oliphant: BVRLA Chairman

Andrew Jones: Department for Transport

Celine Cluzel: Element Energy

An array of speakers: addressed key issues from the conference room, by video link and in break-out sessions

BVRLA News | November/December 2015

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NEWS

2016 events unveiled in industry calendar The fleet industry is set to benefit from a bumper year of forums, conferences and social gatherings – set out in the BVRLA’s calendar of events for 2016.

Our past events have been praised for their unrivalled networking opportunities, strategic insight and expert speakers.”

Some 20 events are planned from January onwards, including three Technical & Operational Management (TOM) forums, three Residual Value & Remarketing (RVR) forums, five Industry forums and two Asset Management & Risk Control forums.

› BVRLA Annual Dinner – a black tie ball taking place at the London Hilton on Park Lane (3 March).

BVRLA Chief Executive Gerry Keaney said: “The BVRLA is committed to running a diverse range of events for those working in the rental and leasing industry. The events we’ve planned for 2016 are sure to appeal to all comers – from frontline customer service advisors to behind-the-scenes executives.

Highlights from the calendar include:

› Broker 200 – a charity kart race around the Daytona Milton Keynes circuit, in aid of BEN, the automotive industry charity (18 May). › Fleet Technology Congress – a conference exploring the latest automotive technologies (6 July). u The 2016 events calendar can be found on the BVRLA website: www.bvrla.co.uk/events

Driver Licence Check service enhances options for BVRLA members The BVRLA’s Driver Licence Check service now includes electronic driver consent, saving drivers the trouble of signing a hard copy data protection mandate. Introduced in 2012, the Driver Licence Check was developed for members who want to verify driving licences against Driver & Vehicle Licensing Agency (DVLA) data – either as part of a fleet management offering to clients or to meet duty-of-care obligations to their own employees. It now holds a direct link to the DVLA’s records, manages all driver communication, returns results from the DVLA instantaneously and stores e-driver consent forms or mandates centrally.

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Commenting on the revisions, the BVRLA’s Director of Member Services, Nora Leggett, said: “This enhanced service will bring efficiency savings to members thanks to the reduced administration it requires. We can offer an attractively priced, low-cost service to members that is not based on the number of checks made.” u Sign up to the service at the BVRLA website – www.bvrla.co.uk/service/ driver-licence-check – or contact Nora Leggett. Contact Nora Leggett 01494 545713 nora@bvrla.co.uk

Paxo: ‘Answer the question!!’

Paxman signs up for BVRLA Annual Dinner The BVRLA is delighted to announce that it has booked author, broadcaster and journalist Jeremy Paxman as the after-dinner speaker for its 2016 Annual Dinner. Widely praised for his unique interviewing style, Paxman is known for his in-depth probing and questioning of politicians on Newsnight, which he anchored from 1989-2014. Paxman will be joined on the bill by comedian Jimmy McGhie. McGhie has been doing stand-up comedy since 2005, and has performed at the Edinburgh Festival on multiple occasions. He has also appeared on BBC Three’s Live at the Electric and Russell Howard’s Good News. Taking place at the London Hilton on Park Lane on 3 March, the 2016 BVRLA Annual Dinner is the mustattend social occasion for those who work in the rental and leasing industry. u Contacts To find out more about the Annual Dinner, visit the BVRLA website (www.bvrla.co.uk) or contact Events Executive Felisha Weekes. Felisha Weekes 01494 545703 felisha@bvrla.co.uk

November/December 2015 | BVRLA News

RESEARCH & INSIGHT

BVRLA member surveys show 90% are satisfied

DVLA sets out Xmas hours

The results are back from the BVRLA’s annual Member and Associate Member surveys.

and advice its team provides. 90% of members thought the BVRLA delivered on both.

Nearly 400 people from a crosssection of almost 200 member companies responded to this year’s questionnaires.

Members praised the BVRLA for organising networking opportunities, with respondents saying they feel involved in the association when they have an opportunity to present or discuss matters at events. Nearly 70% of respondents said they felt involved in participating with the BVRLA’s work.

The Driver & Vehicle Licensing Agency (DVLA) has confirmed opening times for its contact centre over Christmas and the New Year.

The 2015 Member Survey found that, as in 2014, over 90% of BVRLA members were satisfied and found it easy to work with the BVRLA. Nearly 80% said the BVRLA offered good value for money. Over 70% of associate members said they were satisfied.

This year, the BVRLA used a new platform to carry out this research, which plays a vital role in setting its priorities and allocating resources for the year ahead.

The BVRLA’s role as the voice of the industry was highlighted, with over 90% of respondents saying they joined because of the associated status and credibility and the information

Commenting on the next steps, BVRLA Chief Executive Gerry Keaney said: “Our management team will review the survey results and act on recommendations early in January.” u

On Christmas Eve, the centre will be open from 8am to midday, with the drivers premium line for checking licence details open until 3pm. The centre will be closed on Christmas Day, Boxing Day and Monday 28 December. It will be open from 8am until 5pm on Tuesday, Wednesday and Thursday, and closed on Friday (New Year’s Day). The contact centre will revert to its usual hours on Saturday 2 January, when it will be open from 8am to 2pm. The BVRLA offices will close at 2pm on Thursday 24 December and will not reopen until 8.30am on Monday 4 January 2016. u

Leasing figures reveal further rise

For all contract types, year on year growth has slowed to 5.1% for cars and 10.2% for vans. The success story remains personal contract hire (PCH), which has grown at a rate of almost 50% for the year to Q3 2015. The number of PCH cars on fleet is second only to contract hire, which shows marginal growth. In Light Commercial Vehicles, contract hire continues to grow, at around 6% per year. Finance lease comprises smaller numbers but shows over 25% growth for the year to Q3 2015. More than one in five cars delivered in the third quarter of 2015 were

Leasing fleet CO2 emission trends 135

AVERAGE EMISSIONS (G/KM) CO2

The BVRLA’s Quarterly Leasing survey for Q3 2015 showed 1.28 million vehicles are now on contract hire or finance lease – up 1.6% on Q2 2015.

*SOURCE: SMMT

National average for new car registrations*

130 125 120

BVRLA members: whole car fleet

117.8

115 110 105

122.1

112.6 BVRLA members: new car deliveries

100 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015

petrol-fuelled, which represented a slight upturn from Q2 2015. Emissions for the BVRLA car fleet fell 0.5g/km CO2 over the quarter to 117.8g/km CO2, with emissions for

BVRLA News | November/December 2015

new additions to members’ fleets now averaging 112.6g/km CO2. This compares to the national average for new car registrations, which is 122.1g/km CO2. u

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MEMBERSHIP

Professional development Training enjoys end-of-year surge The BVRLA ended 2015 with a surge of training as many members primed their teams for the New Year. The BVRLA’s Professional Fleet Consultant Development programme, Selling Contract Hire course, Introduction to the Vehicle Fleet Industry training and Fair Wear & Tear accreditation were especially busy in the last half of the year with

many members also sitting City & Guilds examinations. This trend looks set to continue into 2016, with several courses already sold out. The BVRLA is in the process of adding more dates. u A full list of professional development opportunities can be found on the BVRLA website: www.bvrla.co.uk/services

New members Rental 1st City Van Hire Ltd (London) Alley Cat Car & Van Rentals Ltd (Harlow) Atlantis Rentals Ltd (Uxbridge) Boleyn Car & Van Hire (Leyton)

Easirent.com (Liverpool) Frosty Hire & Sales Ltd (Enfield) London Automotive (Erith) Midland Motorhomes Ltd (Romsey)

Leasing Broker Britannia Car Finance (Wilmslow) Butlers Vehicle Solutions Limited (Stoke on Trent) Elite Vehicle Leasing (Shrewsbury) Hippo Vehicle Solutions (Blackburn)

Hyper Car Leasing Ltd (Leamington Spa) LVC Central Ltd (Milton Keynes) Palmers (St Albans) Limited (Hemel Hempstead)

Leasing/Contract Hire Crash Cushion Rental Solutions Ltd (Manchester)

Commercial Legal Ltd (Doncaster)

New associate member Auto Trader

In addition to being the default automotive advertising platform for the retail motor trade, Auto Trader’s data and insight can provide invaluable market intelligence

to the leasing and daily rental sectors, combining the established Deltapoint products with unrivalled used car market metrics.

www.autotrader.co.uk

Selling Contract Hire 20-21 January 2016 Stokenchurch Suited to sales professionals in the contract hire and leasing business, this course focuses on the knowledge-based competences required to sell contract hire and explores the ‘how to’s’ of compiling a professional proposal. It includes topics such as recognising opportunities, using forensic investigations, planning and strategic thinking, building trust, and negotiation. Introduction to Daily Vehicle Rental 2-3 February 2016 Amersham These two days of training provide a sound foundation for the skills and knowledge required to work as a customer service specialist in today’s daily vehicle rental environment. It provides a good grounding for employees who are new to the business and need clear and relevant information to get them started. Leasing & Contract Hire (Broker) Workshop 4 February 2016 Amersham This programme provides details of the skills, knowledge and expertise needed to work as a sales specialist in the leasing and contract hire industry. The discussion-based sessions are a great way to catch up on both current and forthcoming legislation and information. Contact Gursh Gill 01494 545719 gursh@bvrla.co.uk

BVRLA Events Technical & Operational Management Forum

MG Motor, Longbridge

4 February

Venue to be confirmed

9 February

Industry Forum

Madjeski Stadium, Reading

11 February

BVRLA Annual Dinner

London Hilton on Park Lane

3 March

Residual Value & Remarketing Forum

For enquiries about events, contact Felisha Weekes: felisha@bvrla.co.uk Full details of all BVRLA events can be found online: www.bvrla.co.uk

BVRLA News | November/December 2015

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