FLEET SPEAK: The devil could yet be in the detail

Date: 30 June 2010

Paul Barker is editor of BusinessCar

Talking to people far wiser than myself in the wake of last week's Emergency Budget, the general feeling is that the business car sector was left alone for now because the Government had much bigger fish to batter in an attempt to make a dent in the deficit.

The train of thought seems to be that the normal March Budget, possibly next year's or more likely in 2012, could be the place for any changes that will have a real impact on the corporate motoring marketplace.

But just because there weren't any massive headline-grabbing schemes in chancellor George Osborne's first opening of the red briefcase, that doesn't mean that fleets can relax and ignore what was announced. Capital allowance, VAT, insurance premium tax and the previously announced rises in fuel duty across the next few months will all have a degree of impact on fleet operation.

The thing is, it's going to take a few weeks to shake out, and until the leasing companies have fully analysed all the issues, we won't see what impact the chancellor's announcements will have on real-world leasing rates.

A couple of pounds on the cost of running a car if leased, and maybe a touch more if bought outright, and two or three pounds per month for the driver seems to be the early calculation, but we'll have to wait and watch to see what consequences the business car industry will end up suffering. Be aware.

Subscribe