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The start point for the best source of fleet information |
There's no doubt that 2016 has been a historic year. We've seen a new prime minister take charge over the UK Government, the EU referendum appeared to stun a nation, and it was announced that the Autumn Statement will be no more - the effect of which, on the motoring and fleet industries specifically, is potentially game-changing.
Therefore, as we look forward to 2017, it makes sense to draw upon what has happened over the past year. The changes from the last 12 months will undoubtedly have an impact over the next year and beyond.
In a recent poll, fleet decision-makers said their biggest concern heading in to 2017 was the price of fuel - thanks to the oil markets the price of fuel started off very low by recent standards (who can forget the British forecourts at 99p per litre in January?) Despite chancellor Philip Hammond's freeze on fuel duty in November, the fall in the pound and other effects such as Opec deciding to cut supply for the first time in eight years, are pushing them up again, and industry commentators tell us that prices are likely to rise further in the new year.
One of the most unsettling changes for the fleet industry has also been one of the most recent. As outlined in the Autumn Statement, the chancellor has confirmed his decision to curb salary sacrifice for car schemes. HMRC has also been clear that it will make no distinction between salary sacrifice and the practice of offering a cash allowance in lieu of a company car, which could affect up to 600,000 drivers.
We can take some solace from the fact that ultra-low emission vehicles will remain unaffected and any existing arrangements will be protected until 2021. With April 2017 as the implementation date, providers and employers need to act now to ensure they can comply with the new rules effectively.
If 2016 was a year of new challenges for businesses that left the fleet industry with some questions, 2017 will be the year when we need to make the smart decisions required for future success.
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