Fleets facing uncertainty as General Election approaches
14 January 2015
The fleet and leasing sector saw a record year of growth in 2014 with fleet sizes up by 7.5%, and while the industry is confident the trend will continue in 2015, there are several factors that could still upset the applecart.
Chief among them is the 7 May General Election, with Gerry Keaney, the British Vehicle Rental and Leasing Association's chief executive, expecting a period of uncertainty due to the strong chance of another hung parliament.
Political analysts believe the result will be closer than in 2010 and businesses will be anxiously waiting to see how the eventual Government will look to implement the required austerity packages of tax measures and spending cuts, as well as hear what fleet-specific steps it will take.
Top of the agenda could be changes to the CO2-based company car benefit-in-kind tax regime amid well-documented air quality concerns not helped by the popularity of diesel vehicles. However, with the current system being simple to operate and easily understood, the Association of Car Fleet Operators is urging caution in respect of any wholesale changes.
John Pryor, ACFO chairman, says the organisation will continue to work closely with Government departments and promote its members' views and concerns.