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BUDGET '09: Industry verdict on Darling's Budget

Date: 23 April 2009

Julie Jenner, chairman, ACFO:

"Aside from the scrappage scheme, the 2009 Budget will have a limited impact on fleets.

"We welcome the early clarification of the 2011/12 company car tax changes, which means that fleets and drivers can take the measures into account when making vehicle choices.

"However, we look forward to hearing more details on the long-term plans for benefit-in-kind tax from 2012 on both low emission company cars and on diesel cars, notably in relation to the possible abolition of the current 3% tax supplement and incentives for Euro6 emission vehicles at the earliest opportunity."

Mark Sinclair, director, Alphabet:

"The other measures announced today will increase the financial pressure on fleets while doing little or nothing to boost the public coffers. Few people even knew the £80,000 ceiling on BIK existed and its removal will affect only a tiny minority of drivers. Nevertheless, some high earners in expensive cars could see their company car tax increase by nearly 60%, or by more than £500 per month from next April. They should consider alternatives to a fully expensed company car, such as an ECO.

Andy Leech, business manager, Mycompanyfleet:

"There is little doubt that this Budget adds to the inflationary pressures that fleets are facing. And that tighter control of fleet costs and better vehicle acquisition and model planning are set to achieve even greater significance."

"With the new 'green accelerator' reforms to the BIK company car tax system clearly signaling the way the Government wants fleet buyers to go - towards ever 'greener' and cleaner vehicles - selecting the right vehicles is going to be crucial."

Ross Jackson, managing director, Fleet Operations:

"The Budget does nothing in the short-term to help the fleet industry or the majority of motorists - indeed they are likely to see their costs rise."